Strait of Hormuz risk intensifies, oil tanker freight futures prices soar (Jin10 Data APP)

Odaily Planet Daily reports that shipping intelligence company Kpler stated that on Monday, due to increased uncertainty in the Strait of Hormuz, freight futures prices for Very Large Crude Carriers (VLCCs) surged by 85%, then retreated later in the trading session. Spot freight rates on routes from key Middle Eastern oil-producing regions to China have risen from $6.55 per barrel to $12 per barrel, reflecting restricted vessel passage and rising risk premiums. By deadweight tonnage, about 6% of the global oil tanker fleet is stranded in the Gulf region, with 9.6% of VLCCs compliant with current environmental regulations. Limited available charter contracts amid restricted crude oil loading are pushing up freight rates. The market expects that export disruptions in the Middle East will increase demand for oil tankers in the Atlantic basin, along the U.S. Gulf Coast, and in India. (Jin10)