Hormuz Strait Shipping Costs Soar to $20 Million per Supertanker

TotalEnergies SE chief executive Patrick Pouyanne said that the cost of shipping oil cargoes through the Strait of Hormuz has risen to $20 million per supertanker.

This is a significant increase, with the additional freight costs for a supertanker now standing at almost $10 a barrel, according to Pouyanne.

The high transportation costs are being offset by discounts offered by Middle Eastern crude producers, who are selling oil at prices significantly below Brent crude levels, which were trading above $90 a barrel on Monday.

TotalEnergies is benefiting from these discounts, with oil being sold at $50-$60 per barrel, Pouyanne said.