VLCC freight rates soar to record levels amid Middle East naval clashes
Super-tanker freight from the Gulf of Oman to China hit about 450 on the Worldscale index, the highest since the conflict with Iran began.
According to the Baltic Exchange, the freight price for very large crude carriers loading oil in the Gulf of Oman and sailing to China climbed to around 450 on the Worldscale scale, equivalent to roughly $11.50 per barrel, marking the peak since the start of the U.S.-Israeli war with Iran. Iran announced it had struck ten ships near the Strait of Hormuz after U.S. forces sank five Iranian tankers, intensifying regional tensions.
In a related development, Yemen's Iran-aligned Houthis reached Perim Island at the entrance of the Bab el-Mandeb Strait, potentially tightening their grip on this vital passage. The heightened conflict is also pushing VLCC rates on the West Africa-to-Asia route to record levels. Analysts warn that sustained high shipping costs could feed inflation and raise expenses for businesses and consumers worldwide.
Why it matters
Rising tanker fees signal that Middle-East hostilities are spilling into global trade, potentially boosting inflation and consumer costs.
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