Key facts
- Supertanker rates from the Persian Gulf to China have reached $510,000 daily.
- This is the highest rate seen in two months.
- Tanker traffic through the Strait of Hormuz has slowed due to security concerns.
- Crude oil prices have risen for a fourth consecutive day.
- Saudi Arabia is offering alternative export routes outside the Persian Gulf.
Supertanker rates for voyages from the Persian Gulf to China have surged to $510,000 per day, marking a two-month high. This increase is attributed to escalating security concerns in the Strait of Hormuz, a critical chokepoint for global oil transport, and sustained demand from Asian buyers. Tanker traffic through the strait has reportedly slowed, with operators increasingly switching off Automatic Identification System (AIS) transponders to avoid detection, a practice known as 'dark mode'.
Crude oil prices have consequently risen for a fourth consecutive day, with Brent crude trading at $91.53 per barrel and West Texas Intermediate at $85.47 per barrel. This follows the expiration of a June ceasefire deal between the U.S. and Iran, with both nations exhibiting a hardline stance. While President Trump has declared the strait open, Iran asserts it remains closed, and recent reports of tankers diverting from the chokepoint suggest Iran's assertion holds sway.
Analysts note that the heightened risks, including prevalent attacks from Iran and Houthi forces, are supporting oil prices in the near term. However, Gulf producers are exploring alternative export routes, such as ship-to-ship transfers off the coast of Oman, to circumvent the Strait of Hormuz. Saudi Aramco is reportedly marketing crude cargoes through these alternative channels, which could potentially increase shut-in production.