Tuesday, June 17, 2025

How is Shipping Impacted by an Israel-Iran War? | Trade Through The Stra...

 

Tanker rates for vessels carrying refined oil products from the Middle East have surged in recent days, as the exchange of fire between Israel and Iran makes hauling fuel through the Strait of Hormuz more risky. 

Fuel Tanker Rates Surge as Mideast Conflict Puts Hormuz in Focus 

By Yongchang Chin , Nicholas Lua 

Fuel Tanker Rates Surge as Mideast Conflict Puts Hormuz in

Tanker rates for vessels carrying refined oil products from the Middle East have surged in recent days, as the exchange of fire between Israel and Iran makes hauling fuel through the Strait of Hormuz more risky.

  • The cost to ship fuels from the Middle East to East Asia climbed almost 20% in three sessions to Monday, according to data from the Baltic Exchange. 
  • Rates to East Africa, meanwhile, jumped more than 40%. 
  • Tanker owners and managers had been pausing vessel offers in the Middle East as the hostilities between Israel and Iran show no signs of letting up.

There haven’t yet been any major attacks on commercial shipping in the Persian Gulf, but the market is on edge. 

Major exporters in the region, such as Saudi Arabia and the United Arab Emirates, use the route to ship oil to international markets. 

Stagflation threat returns as Israel-Iran conflict sparks fears oil price  could spike above $120

Stagflation threat returns as Israel-Iran conflict sparks fears oil price could spike above $120


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