Latest measures could support further tanker demand

The US has intensified its “maximum pressure” campaign on Iran, blacklisting around twenty companies and vessels involved in the covert sale of Iranian oil to China. The latest sanctions target middlemen, inspection firms, and tankers accused of disguising the origin of Iranian crude.

Another potential windfall for non-sanctioned tankers
With rising enforcement and scrutiny, Chinese refiners may be forced to reduce Iranian oil imports and shift sourcing to other suppliers, likely from the Atlantic Basin and other compliant regions, a trade flow shift that we have seen more often of late. This rerouting increases voyage lengths, driving tonne-mile demand and supporting freight rates, particularly in the VLCC and Suezmax segments.

The US previously stated its goal to eliminate Iran’s ~1.7 million barrels per day of oil exports. If enforced effectively, this would increase reliance on compliant tonnage and could provide upward pressure on tanker utilization.