Supertanker Demand Soars as Strait of Hormuz Closure Reshapes Global Crude Flows
A surge in demand for supertankers has led to a wave of orders worth over $20 billion, with shipowners ordering more than twice as many vessels this year compared to all of 2025. This buying spree is the largest in at least 25 years and reflects growing expectations that crude will travel longer distances from the Atlantic basin. Asian and European refiners are having to replace supplies lost after the virtual closure of the Strait of Hormuz, through which about one-fifth of global oil and liquefied natural gas supplies passed before the war between the United States and Iran.
US crude exports have reached record highs, while other Atlantic basin producers are also increasing output. Brazil, Guyana, and Argentina are expected to play a growing role in that expansion. Industry estimates suggest oil production on South America's east coast could increase by around 2.5 million barrels per day through 2030.
Market brokers have estimated that a 10-year-old tanker can now cost more than ordering a new vessel, underscoring the strength of demand for available tonnage. Around 20% of the global VLCC fleet is more than 20 years old, adding pressure on shipowners to replace aging vessels.