Middle East Conflict Drives Shipping Costs to Record Highs

The cost of shipping oil in supertankers has reached record highs following a recent wave of attacks on shipping vessels in the Middle East. According to data from the Baltic Exchange, the rate for loading oil from the Gulf of Oman for shipment to China reached around 450 on a Worldscale basis, equaling roughly $11.50 per barrel.

This is the highest rate since the start of the US-Iran war in late February. The increased risk of operating in and around the Middle East Gulf is driving up freight rates, with analysts warning that elevated shipping costs could add to inflationary pressures and raise costs for businesses and consumers already facing uncertainty from the widening conflict.

Vortexa analyst Ioannis Papadimitriou said that 'renewed attacks between the US Navy and Iran continue to push freight rates around the Gulf to new highs.'