Oil Tanker Rates Top $1 Million a Day as Hormuz War Squeezes Fleet
The cost of hiring an oil tanker on the benchmark route topped $1 million a day for the first time, reaching $1.035 million. The benchmark route has become less relevant as exports shift to shuttling through Hormuz, with the alternative route from the Gulf of Oman costing about $644,000 a day. Rates are driven by the Iran war, refining margins, and disruptions to Saudi oil flows from Houthi rebels.
Why it matters: This illustrates how geopolitical conflict in the Strait of Hormuz is reshaping energy markets and shipping costs.