A scarcity of available oil tankers is fueling a sharp rise in maritime freight costs, creating a fresh supply gap in energy markets. The tensions stem from the Iran war, which has constrained crude exports from key regions and intensified pressure on an already stretched vessel fleet.
Earlier this month, drone attacks knocked out a bypass pipeline in Saudi Arabia, forcing large volumes of crude to be rerouted through the Strait of Hormuz. This added significant strain to the tanker fleet, which was already operating with limited spare capacity, as detailed by reporters Rebecca Von, Georgi Kanchev, and Summer Saed in their analysis of the global impact.
Longer voyage distances around the Strait and increased transshipment activity are tying up vessels and driving up daily charter rates for tankers. With fewer ships available, the efficiency of oil transport has declined, while shipping costs remain at historic highs, compressing profit margins for refiners. Even as international crude prices soften, there is a risk that fuel prices will stay elevated due to these logistics bottlenecks.
The sudden tightening in supply for Very Large Crude Carriers (VLCCs) has pushed the cost of transporting oil through the Strait of Hormuz to an all-time high. According to maritime intelligence firm Windward, daily charter rates for supertankers loading in the Persian Gulf and transiting the Strait surpassed USD 1 million earlier this month.
On a per-barrel basis, this translates to a shipping cost of USD 26, representing roughly a quarter of the prevailing crude market value. The combination of the Iran war and the Ukraine conflict has reduced crude exports from Russia and the Persian Gulf region, prompting some voices in the market to even call for a US ban on crude exports.
These developments underscore the fragile state of global oil logistics, where geopolitical shocks ripple through shipping capacity and ultimately hit end-user fuel prices. As the situation evolves, market participants will be watching both tanker availability and any policy responses that could further alter trade flows.
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