Half of the Middle Eastern crude oil bound for Japan is being rerouted through intermediate sea areas after the closure of the Strait of Hormuz, utilizing a transshipment strategy. Japanese refiners are avoiding the risky Middle Eastern waterways and shortening transit times. Despite the added cost of transshipment, it's deemed more cost-effective than transporting US crude via the Horn of Africa, suggesting this method will likely continue during the Strait of Hormuz closure.