Reuters: Global oil and gas shipping costs surged on Tuesday after Iran vowed to close the Strait of Hormuz, a key route for global energy supplies, escalating tensions in the region. Supertanker rates in the Middle East hit record highs as shipping through the strategic waterway between Iran and Oman slowed sharply.
The strait carries about one-fifth of the world’s oil consumption and significant volumes of liquefied natural gas (LNG). The benchmark freight rate for very large crude carriers (VLCCs) transporting 2 million barrels of oil from the Middle East to China (TD3 route) climbed to a record Worldscale 419, equivalent to $423,736 per day, according to LSEG data. The rate has more than doubled since Friday.
The surge followed intensified conflict between the United States and Iran. Iranian media reported that a senior official of the Islamic Revolutionary Guard Corps declared the Strait of Hormuz closed and warned that Iran would fire on any vessel attempting to pass. Oil and gas prices also jumped amid fears of prolonged disruption.
Brent crude futures rose nearly 10% this week as shutdowns were reported at several oil and gas facilities across the Middle East. LNG shipping rates also spiked sharply. Atlantic LNG tanker rates rose 43% to $61,500 per day, while Pacific rates climbed 45% to $41,000 per day, according to Spark Commodities.
Analysts said spot LNG shipping rates could exceed $100,000 per day this week due to tight vessel supply.Industry sources said several shipowners have suspended Gulf operations, making it difficult to assess market conditions as uncertainty continues.
