Tanker Shortage Drives Up Fuel Prices Amid US-Iran Conflict
The global oil tanker market is facing a shortage due to the ongoing conflict between the U.S. and Iran.
The situation escalated in September after drone attacks halted operations on the Saudi 'East-West' oil pipeline, which had been used to transport oil from fields in eastern Saudi Arabia to the Red Sea coast.
As a result of the pipeline shutdown, significant volumes of crude oil have had to be rerouted by sea through the Strait of Hormuz, increasing demand for tankers and driving up charter rates.
The cost of chartering certain supertankers has already reached record levels, with the daily charter rate for a supertanker transporting oil from the Persian Gulf through the Strait of Hormuz exceeding $1 million in early September.
According to Windward, calculated per unit of cargo, transportation costs have amounted to approximately $26 per barrel.