Supertanker costs in the Middle East hit historic highs after Iran targets vessels near the Strait of Hormuz, triggering energy price spikes and regional shutdowns……
Global oil and gas shipping markets were thrown into turmoil on Tuesday as freight rates for crude and liquefied natural gas (LNG) vessels surged to unprecedented levels amid escalating tensions between the United States and Iran.
The sharp spike follows Iranian action against vessels transiting the strategic Strait of Hormuz, a narrow maritime corridor between Iran and Oman that carries roughly one-fifth of the world’s oil supply and substantial volumes of LNG.
Shipping activity through the waterway has slowed dramatically after Iran launched retaliatory strikes in response to U.S. and Israeli attacks, raising fears of a prolonged disruption in one of the world’s most critical energy arteries.
Supertanker Rates Hit All-Time High
Data from market trackers show a dramatic escalation in freight costs, particularly for Very Large Crude Carriers (VLCCs) and LNG tankers.
- The benchmark TD3 freight rate covering shipments of two million barrels of crude from the Middle East to China climbed to a record W419 on the Worldscale index, equivalent to $423,736 per day, according to LSEG data.
- The rate has doubled since Friday, building on gains recorded after U.S. and Israeli strikes on Iran.
- LNG tanker rates also spiked sharply. Spark Commodities reported that Atlantic LNG freight rates jumped 43% to $61,500 per day, while Pacific rates climbed 45% to $41,000 per day.
The surge followed Qatar’s decision to halt production at some facilities as a precautionary measure, compounding supply concerns.
The spike underscores how rapidly geopolitical tensions in the Middle East can ripple through global energy supply chains.
Oil and Gas Prices Climb
Energy markets reacted swiftly. Brent crude futures have climbed nearly 10% this week, driven by fears of supply interruptions and shutdowns at oil and gas facilities across the region.
With the Strait of Hormuz serving as a gateway for exports from major producers including Saudi Arabia, Iraq, the UAE and Qatar, any sustained disruption could tighten global supply and sustain upward pressure on prices.
Conflicting Signals on Hormuz Status
Market uncertainty intensified after an Iranian Revolutionary Guards official claimed that the Strait of Hormuz had been closed and warned that vessels attempting passage would be targeted, according to Iranian media reports.
However, the U.S. military’s Central Command stated that the strait remains open, a position echoed by U.S. officials speaking to international media outlets.
Despite these reassurances, precautionary shutdowns have occurred at several oil and gas facilities in Gulf countries following retaliatory strikes, heightening concerns about a broader regional escalation.
Impact Reaches Nigeria
The ripple effects are already being felt downstream in Nigeria.
The Dangote Petroleum Refinery has raised its Premium Motor Spirit (PMS) gantry price by N101, pushing the ex-depot rate from N774 to N875 per litre.
The refinery attributed the adjustment to volatility in global crude markets, with prices climbing above $80 per barrel in recent days. It also suspended petrol loading operations effective midnight on March 2, 2026, as a precautionary measure in response to the sharp rise in crude costs.
As freight rates and commodity prices continue to surge, traders and policymakers alike are closely watching developments in the Strait of Hormuz aware that any prolonged disruption could have far-reaching consequences for global inflation, energy security, and emerging markets heavily dependent on fuel imports.
