Supertanker costs in the Middle East have surged to record levels amid escalating tensions from the U.S.-Iran conflict, particularly following Iran’s attacks on vessels in the Strait of Hormuz. This vital waterway, which facilitates the passage of about one-fifth of the world’s oil and significant liquefied natural gas, has seen shipping nearly come to a halt due to retaliatory actions by Iran against U.S. and Israeli strikes.
As a result of these disruptions and fears of a prolonged closure, oil and European natural gas prices have spiked. Brent crude futures rose nearly 10% this week, while freight rates for very large crude carriers (VLCCs) reached an unprecedented high of W419, equating to approximately $423,736 per day. This increase follows a doubling of rates since Friday, influenced by the assassination of Iran’s Supreme Leader Ayatollah Khamenei.
LNG shipping rates also surged over 40% after Qatar halted production, with Atlantic rates climbing to $61,500 per day. Analysts predict spot LNG rates could exceed $100,000 this week due to tight supply. Meanwhile, South Korean shipping companies are exploring alternative routes as regional operations face significant disruptions.
