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The Iran War Has Turned VLCCs Into $650,000-a-Day Assets
oilprice.com · August 28, 2026 · Week 2026-35
Summary
Geopolitical risk from the Iran war and Houthi attacks has caused supertanker rates on the benchmark Saudi Arabia-to-China route to surge to a record $647,000 per day. The spike is driven by a shortage of vessel owners willing to transit the high-risk Strait of Hormuz, creating a massive premium and logistical challenges for Gulf crude exporters trying to meet Asian demand.
Strategic Implication
The extreme surge in freight costs significantly increases the landed price of Gulf crude in Asia, threatening its market share and highlighting the critical vulnerability of the Strait of Hormuz chokepoint.