Iran War Drives Oil Tanker Prices Skyrocketing

The war in Iran has triggered a significant increase in oil prices for tankers passing through the Strait of Hormuz, making them extremely valuable assets. According to Baltic Exchange data cited by Bloomberg, the earnings on the Saudi Arabia-to-China supertanker route surged to a record $647,000 per day on Thursday.

This is more than ten times the rate a year ago and nearly 27% above the previous high of $510,000 reached just ten days earlier. The increase in oil prices comes as Persian Gulf producers increase crude shipments through the Strait of Hormuz despite the ongoing Iran war.

However, this has created another problem: ships. Few tanker owners are willing to send vessels through Hormuz, leaving exporters competing for a smaller pool that will take the risk. As a result, an extraordinary premium is being paid by those who are willing to make the trip.