The soaring cost of shipping is lifting the price of oil for consumers
Tanker rates surged to historic highs in September, and by mid-October shipping crude from the Middle East Gulf to Asia on a large tanker cost over $37 per barrel, more than five times its level before the war began. The latest rally followed drone attacks on Saudi Arabia’s East-West crude oil pipeline on 11 September 2026, which coincided with a ramp-up in Chinese buying and more Saudi oil moving through the Strait of Hormuz.
Why it matters: This matters for energy costs, because higher freight rates add further upward pressure on energy costs for economies heavily reliant on imports and can turn refining operations from profitable to loss-making.