US-Iran war six months on: Tanker rates, fuel prices surge amid disruptions

Six months into the ongoing Middle East conflict, tanker freight rates have reached record highs and refined products markets are tightening as a result of disruptions around the Strait of Hormuz. Ship crossings through the key waterway, which handles 20% of global seaborne oil and LNG flows, have fallen by over 80% since the US-Iran war began on February 28.

Persian Gulf energy producers have faced lower ship viability for their seaborne trades while developing alternative, longer routes to maintain their exports, leading to poorer fleet employment efficiency. The conflict has resulted in historically high earnings for clean and dirty tankers, with the Middle East Gulf-Japan Long Range 2 tanker route hitting an all-time high of $107.72/mt on August 27.

Southeast Asia's refined product shortfall has compounded the squeeze, forcing buyers to compete harder for alternative barrels and extending charters for vessels still able to access the Middle East Gulf and regional export programs.

Brief written by urgent.news from Hellenic Shipping News's own syndicated text. Machine-written — may contain errors; check the original before relying on it.