Iran War Disrupts Oil Shipping Costs, Driving Freight Rates to Record High

The ongoing war in Iran has disrupted tanker availability and lengthened voyage times, causing oil transport costs on routes from the Middle East to Asia to surge to unprecedented levels.

VLCC daily freight rates on Middle East-China routes have surpassed $1.2 million, more than doubling since late August amid tanker shortages and war disruptions.

The shipping disruption is also slowing cargo movements through the Gulf, with oil moving through the Strait of Hormuz on 60 vessels that shuttle cargoes for transfer in the Gulf of Oman.