Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I. The Sumed pipeline is indeed a strategic route for Persian Gulf oil and natural gas shipments to Europe, as it provides an alternative to the Suez Canal for transporting oil. It connects the Red Sea with the Mediterranean Sea, running from the Ain Sokhna terminal in the Gulf of Suez to the Sidi Kerir port in the Mediterranean. This connection is crucial for facilitating the transport of oil from the Persian Gulf to European markets, thereby making Statement-II an explanation for Statement-I.