Freight rates surge as Hormuz disruption tightens tanker supply and triggers global market volatility Freight rates surge to historic levelsTanker markets have moved into extreme territory following the escalation of conflict in the Middle East. Freight rates were already elevated prior to the strikes on Iran, but disruption to shipping through the Strait of Hormuz has triggered an unprecedented spike in tanker earnings. According to Baltic Exchange data cited by Lloyd’s List, the benchmark Middle East–China VLCC route surged to

Conflict in the Gulf threatens one of the world’s most critical energy chokepoints, increasing volatility across oil and shipping markets Hormuz disruption raises shipping riskConflict escalated in the Middle East in late February following coordinated strikes by the United States and Israel on Iranian targets, triggering retaliatory attacks on commercial vessels and maritime infrastructure in the Persian Gulf. The US-led naval coalition protecting shipping has since raised the regional threat level to critical, with multiple tankers reportedly targeted in recent

Policy reset drives near-term cargo surge, but uncertainty persists The U.S. Supreme Court’s decision to strike down the Trump administration’s IEEPA tariffs has injected fresh volatility into global trade flows, with mixed implications across shipping markets. In the near term, the ruling may prompt a front-loaded surge in US-bound imports as cargo owners move ahead of potential policy changes. While the most direct impact sits in container trades, the resulting uplift in refinery runs, inventory restocking, and broader industrial activity

Hormuz headline risk persists, supporting elevated crude freight while near-term volatility remains high Crude tanker markets strengthened further during this past week, led by a sharp rally in VLCC earnings. Middle East to China spot rates climbed to their highest levels since 2020 and nearly three times higher than at the start of the year, to about USD 151k/day, supported by stronger global crude output and tightening prompt vessel availability. Market sentiment has also firmed amid rising US-Iran tensions and

Trade policy remains in focus as geopolitical risks build Tanker: Exceptional VLCC week supports firm segment toneCrude tanker markets strengthened last week, led by a sharp rebound in VLCC earnings, which rose 24% week on week to about $146k/day, the highest level since April 2020, supported by tighter tonnage availability and rising US-Iran tensions.  Suezmax earnings also improved on active Atlantic fixing to around $102k/day, while Aframax performance was broadly stable, with North Sea activity edging higher toward the end

VLGC fundamentals remain firm on strong export and demand momentum Following International Energy Week in London, both vessel owners and brokers point to continued strength in the VLGC market, underpinned by robust LPG export growth and firm import demand. BW LPG chief executive Kristian Sørensen highlighted rising US and Middle East volumes alongside strong buying from India and Indonesia, describing the underlying commodity story as supportive of sustained vessel utilisation and cash generation. Broker assessments broadly reinforce the constructive outlook.

Sanctions pressure and Strait of Hormuz risks sustain the geopolitical risk premium in tanker markets Oil prices softened ahead of a second round of US-Iran nuclear talks in Geneva that could reshape the geopolitical risk premium built into crude. Brent eased toward USD 68 per barrel as markets weighed the prospect of future sanctions relief against persistent regional tensions. At the same time, Iran’s Revolutionary Guard conducted military drills near the Strait of Hormuz, the strategic chokepoint through which roughly

Sanctions dynamics continue to reshape global crude trade flows Tanker: Crude segment continues to perform at elevated levelsCrude tanker markets held broadly steady at elevated levels this week, with weighted average earnings north of USD 100,000 per day. Aframax markets showed relative strength, particularly in the Mediterranean and US markets, while Suezmax performance remained steady week-on-week. In contrast, the product tanker segment corrected following last week’s gains, with clean MR earnings falling amid slowing cargo enquiry and a lengthening position

1 in 6 crude carriers hit by sanctions Sanctions Now Cover 16% of Total Tanker CapacityFresh measures announced Friday saw the US add 14 vessels linked to Iranian trade, while the EU prepares to list another 43 ships and restrict European maritime services for transporting Russian crude. In total, 935 oil tankers are now sanctioned, equivalent to roughly 112 million dwt or around 16% of global fleet capacity, highlighting the scale at which sanctions are reshaping tanker supply and oil

Strong China exports shift the PCTC supply outlook Chinese vehicle exports have consistently outperformed expectations in recent years, reaching roughly 8.3 million units in 2025, up more than 30% year-on-year, and electric vehicle exports rising close to 70% year-on-year, according to the China Passenger Car Association (CPCA) per Gasgoo. This surge has absorbed record levels of new PCTC newbuilding deliveries, effectively selling out the PCTC fleet claims chief executive of Wallenius Wilhelmsen, Lasse Kristoffersen. Strong Chinese demand is now increasingly