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Market Chatter: Strait of Hormuz Security Crisis Pushes Crude Transport Fees to Highest Level Since June

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The cost of hiring a supertanker to carry crude oil on the benchmark Middle East-to-China route approached $500,000 per day as the ongoing Iran conflict continues to deter many shipowners from entering the Strait of Hormuz, Bloomberg reported on Monday.

According to the report, this surge follows a move by South Korea's Sinokor Group, the world's largest supertanker owner, which provisionally hired out one of its vessels at a sky-high rate to pick up a cargo from inside the Persian Gulf bound for Asia.

Consequently, the benchmark shipping route hit its highest level since June on Friday, the report added.

While a few shipowners continue to brave the chokepoint, the willingness of operators to call at ports inside the Persian Gulf has dwindled significantly as vessels sporadically come under military attack.

Sinokor did not respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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