Middle East Attacks Send Oil Shipping Costs Soaring

The cost of transporting crude oil on the world's largest tankers has surged to record highs due to a fresh wave of attacks in the Middle East.

Rates for very large crude carriers (VLCCs) transporting oil from the Gulf of Oman to China climbed to around 450 points on the Worldscale index, equivalent to approximately $11.50 a barrel, according to Baltic Exchange data.

This represents the highest recorded rate since the benchmark was launched earlier this year following the outbreak of the U.S.-Israeli war with Iran.

The sharp increase in tanker rates indicates how rapidly the conflict's economic impact is spreading beyond crude prices, increasing transportation costs and potentially adding to inflationary pressures already confronting businesses and consumers.