economy

March 3, 2026

Oil supertanker rates hit all-time high as insurers drop war risk protection in the Middle East

The cost of hauling crude oil from the Middle East to China rose more than 94% to hit a record high of $423,736 per day on Monday.

Oil supertanker rates hit all-time high as insurers drop war risk protection in the Middle East

TL;DR

  • The benchmark freight rate for Very Large Crude Carriers (VLCCs) from the Middle East to China hit a record high of $423,736 per day.
  • Major marine war risk providers are canceling cover for vessels operating in the Persian Gulf amid escalating conflict.
  • The Strait of Hormuz, a vital oil choke point, faces disruption due to attacks and disputed claims of closure.
  • Shipping costs are increasing across various sectors, including dry bulk, due to the conflict's ripple effects.
  • Approximately one-third of seaborne crude oil trade, 19% of global LNG, and 14% of refined products move through the Strait of Hormuz.
  • Major shipping giants like MSC, Maersk, Hapag-Lloyd, and CMA CGM are issuing safety guidance and rerouting vessels.

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