Global oil shipping rates hit record highs amid Iran tensions
Global oil and gas shipping rates surged to record levels as tensions escalated between the U.S. and Iran, with supertanker costs in the Middle East hitting all-time highs. The spike follows Tehran's targeting of vessels in the Strait of Hormuz, a critical oil chokepoint. Shipping through the strait slowed to a near halt after Iran's retaliatory strikes. This disruption, combined with fears of prolonged closure, drove Brent crude futures up nearly 10% this week. Freight rates for very large crude carriers (VLCCs) from the Middle East to China reached an all-time high of W419 ($423,736/day), doubling from Friday. LNG tanker rates surged over 40% after Qatar halted production. The impact extends to Nigeria: Dangote Petroleum Refinery increased Premium Motor Spirit (PMS) prices by N101 per litre (ex-depot rate from N774 to N875) and suspended petrol loading as a precaution against rising crude prices.