Iran Conflict Drives Middle East Oil Tanker Prices to Record Levels

Supertanker Freight Rates Reach Unprecedented Levels Amid Middle East Turmoil

Freight charges for supertankers transporting crude oil from the Middle East to China soared to an all-time high, surpassing $420,000 per day on Monday. This surge comes as escalating conflict in the Middle East disrupts the critical Strait of Hormuz, the world’s busiest oil shipping corridor.

According to the Baltic Exchange’s TD3C MEG-China index, the daily charter cost for a Very Large Crude Carrier (VLCC)—which can haul around 2 million barrels of oil—reached a record $423,736 on Monday.

Rates for other tanker types and routes have also surged, as the Strait of Hormuz remains effectively inaccessible. Many shipping companies are rerouting or pausing their vessels near this vital passage, which handles about 20% of the world’s oil and LNG shipments. Traffic for both oil and LNG tankers has come to a standstill in the narrow waterway between Iran and Oman.

On Monday, Iran announced the closure of the Strait of Hormuz. Ebrahim Jabbari, a top advisor to the IRGC Commander-in-Chief, warned that Iran would “attack and set ablaze any ship attempting to cross.”