Key facts
- Tanker rates have quadrupled in the past year, reaching over $200,000 a day.
- Per-barrel shipping costs from the Persian Gulf to the Far East have risen to over $30.
- Diesel prices are near a record high at $6.29 a gallon.
- Around 20 oil tankers have been lost in the last two weeks.
- Energy inflation rose 5.2% in September.
- Transportation costs add an estimated $35-$40 per barrel to oil prices.
The oil market is experiencing a transportation crisis, with soaring tanker rates and high diesel prices contributing to sustained energy costs for consumers. Very Large Crude Carriers (VLCCs), frequently used in the Persian Gulf, have seen their daily rates increase from approximately $50,000 in late 2025 to over $200,000 in October, more than quadrupling in a year. This surge has driven the cost of shipping crude from the Persian Gulf to the Far East from under $2 per barrel to over $30 per barrel year-to-date. Diesel prices remain near record highs at around $6.29 a gallon. Analysts suggest that the current transportation challenges, including longer voyages due to the blockade of the Bab-el Mandeb Strait and the loss of around 20 oil tankers in recent weeks, are adding an estimated $35-$40 to the price of each barrel of oil. Despite improved crude exports from the Middle East, energy inflation accelerated to 5.2% in September, underscoring the impact of these shipping pressures.