The armed conflict in the Middle East, which erupted on Saturday, has sharply impacted the global oil and shipping markets. The primary reason is the near-total blockade of the strategically important Strait of Hormuz—a narrow passage off the coast of Iran through which about 20% of the world’s oil and liquefied natural gas exports pass.
This is reported by Finway
Record Increase in Freight Rates
Alongside the sharp rise in global oil prices, tanker freight rates in the region have surged to unprecedented levels. In particular, Sinokor, which in 2026, along with shipping magnate Gianluigi Aponte, controls a significant share of the global VLCC (Very Large Crude Carrier) fleet, reported a new freight rate for oil transportation from the Middle East to China to brokers on Monday. This rate reached 700 points on the Worldscale system, more than three times the level recorded last Friday.
“A rate of 700 points translates to about $20 per barrel for delivery to eastern China,” noted two ship brokers.
In comparison, a tanker operated by Dynacom Tankers Management was chartered at a rate of $525 on the Worldscale, yielding approximately $350,000 per day for the shipowner. The Worldscale system is used to calculate transportation costs and allows shipowners and oil companies to quickly assess the profitability of deals and transportation expenses.
Impact on Producers and the Oil Market
Experts warn that in the event of a complete blockade of the Strait of Hormuz, oil producers in the Middle East will be able to maintain current production levels for no longer than 25 days. Currently, the movement of tankers through the strait has significantly decreased due to voluntary restrictions imposed by shipowners for safety reasons.
Thus, the threefold increase in freight rates and shipping restrictions are already having a noticeable impact on global energy markets and could have long-term consequences for the world economy.