Middle East War Drives Tanker Freight Rates to Record High

Tanker freight rates for crude oil from the Middle East to Asia have hit an all-time high, surging to 4.5 times the standard benchmark.

The Baltic Exchange data shows that very large crude carriers (VLCCs) hauling cargoes from the Gulf of Oman to China are now fetching Worldscale rates around 450, equivalent to about $11.50 per barrel of shipping cost.

This spike in freight costs is due to the war between the United States and Iran, compounded by renewed fighting in Yemen, which has reshaped global energy logistics.

The repeated exchanges of fire between US naval forces and Iran continue to push Gulf freight costs to new highs, according to Ioannis Papadimitriou, an analyst at energy data firm Vortexa.