US Navy image of Iranian craft swarming a tanker transiting Hormuz last year
Freight rates chart their own course amid turmoil
For the tanker market, recent escalation in the Mideast conflict has largely been offset by soft fundamentals
Israel’s expanding war continues to cast a shadow over global politics and the commodity markets, especially given recent fears of an escalation with Iran. At the same time, the global tanker market is no stranger to geopolitical risk; indeed, war premiums and other insurance-related costs are explicitly written into contracts and reflected by freight rates. But while the cost of freight has responded to recent developments, particularly at the start of October—when Israel and Iran seemed on the brink of open warfare—the tanker market has not mirrored crude price fluctuations. Other fundamentals and factors continue to ensure freight rates are charting their own course amid the conflict. “We
Also in this section
21 March 2025
Two recent developments raise the prospect of a revival in northern Iraqi oil and gas fortunes, but familiar obstacles could thwart momentum
20 March 2025
As cash-strapped Western governments commit to substantially raising defence expenditure, a similar dynamic is playing out in Saudi Arabia’s oil and gas sector, as Saudi Aramco maintains it heavy capex push despite reduced revenues
20 March 2025
Tariffs, sanctions and trade conflicts are upending the oil market, impacting crude differentials and shipping rates and creating uncertainty
20 March 2025
While advanced economies debate peak fossil fuel demand, billions of people still lack access to reliable and affordable energy, especially in the Global South
