Iran War Drives Oil Tanker Rates to Record High

Oil tanker rates have surged to over $1 million per day due to disruptions caused by the Iran war, according to data from the Baltic Exchange in London. The benchmark route for tankers carrying crude from the Persian Gulf to China has seen earnings reach $1.035 million on Monday.

The Iran war has led to a shift in oil exports, with vessels increasingly being shuttled through the Strait of Hormuz before transferring to tankers waiting outside the waterway. This has resulted in higher tanker rates, as well as longer voyage times for vessels carrying cargoes out of the Strait of Hormuz.

The strong earnings are also supported by a sharp increase in refinery margins, which have been driven by disruptions in Iran and Ukraine contributing to tighter global fuel supplies. Refiners continue to buy and transport crude due to profitable processing into finished fuels such as diesel and gasoline.