Global shipping costs for oil and gas have surged following the escalation of tensions between the U.S., Israel, and Iran, alongside Tehran’s threats to close the Strait of Hormuz. This critical chokepoint handles roughly one-fifth of the world’s oil consumption and a significant portion of the liquefied natural gas trade.
Industry data show that transport through the Strait of Hormuz, between Iran and Oman, has been severely disrupted following recent attacks on tankers in the region. Concerns over a potential prolonged disruption have driven sharp increases in crude oil and European natural gas prices, with Brent crude futures climbing nearly 10% this week.
Meanwhile, benchmark shipping rates for very large crude carriers (VLCCs), which transport roughly 2 million barrels from the Middle East to Asia, have hit record highs. Industry figures report that daily charter rates have surged above $420,000, roughly double the levels seen just days earlier.
Iranian authorities claim the Strait of Hormuz is closed and have threatened attacks on vessels attempting to pass, while U.S. military sources say the strait remains officially open. These conflicting reports are fueling further uncertainty in energy markets and fears of another global supply shock.
