Global oil and gas shipping prices have risen sharply, with the cost of supertankers in the Middle East reaching historic levels, as the US-Iran conflict intensified after Tehran attacked ships passing through the Strait of Hormuz, according to shipping data and industry sources.
Maritime transport through the Strait of Hormuz between Iran and Oman, through which about 1/5 of the world’s oil is transported, as well as large quantities of liquefied natural gas, has been almost completely halted after attacks on ships in the area, while Iran retaliated against US and Israeli attacks.
The unrest and fears of a prolonged shutdown have pushed up oil and gas prices in Europe, with Brent crude futures rising by almost 10% this week, as the conflict has caused widespread disruptions at oil and gas plants in the Middle East.
The base crude oil freight rate for very large crude carriers (VLCCs) used to transport 2 million barrels of oil from the Middle East to China, also known as TD3, rose to a record high of 419 W on the Worldscale industry metric used to calculate freight rates on Monday, or $423,736 per day, according to LSEG data.
