Oil tanker charter rates set for new highs after Trump threats
Oil tanker charter rates have recently reached record levels and may rise further after US President Donald Trump threatened renewed strikes on Iran. Rates for shipping from the Gulf to China hit a record, with earnings for VLCCs on the Saudi-China route reaching $656,000 per day on August 28, 2026, more than ten times the level a year earlier. The cost of shipping through the Strait of Hormuz has risen, with TotalEnergies CEO Patrick Pouyanné citing costs up to $20 million per transit.
Why it matters: This illustrates the theme of geopolitical risk and energy markets, as tensions in the Strait of Hormuz directly impact global oil shipping costs and supply chains.