Record Shipping Costs for US Crude to China Amid Middle East Conflict

The cost of shipping US crude oil to China has skyrocketed to a record high due to disruptions in traditional Middle Eastern energy routes caused by ongoing conflicts.

A very large crude carrier (VLCC) capable of carrying about 2 million barrels from the US Gulf Coast to China now costs approximately $44.8 million, up sharply from around $39 million a day earlier and more than twice the estimated $17.8 million recorded before the Iran war began in late February.

The steep increase in tanker charges reflects growing uncertainty across global oil shipping routes as the conflict continues to affect established supply channels.