Oil tanker earnings surge amid Middle East conflict

Daily earnings for very large crude carriers (VLCCs) on the Middle East-to-Asia route have surged to nearly $510,000 as of mid-August 2026. This spike follows a period earlier in the year where average daily earnings ranged between $385,000 and $470,000.

The increase in shipping rates is driven by geopolitical instability in the Middle East. Following military strikes involving the US and Israel in February 2026, the Strait of Hormuz—through which approximately 20% of global oil flows—has become a high-risk zone. The conclusion of a 60-day ceasefire between Iran and the US in August 2026 has not stabilized the market, as operators continue to price in significant risk premiums due to vessel shortages, delays, and rerouting.

In response to these market dynamics, South Korean shipping firm Sinokor Merchant Marine, led by Ga-Hyun Chung, has significantly expanded its fleet. The company spent between $5.9 billion and $7 billion in 2026 to acquire approximately 73 VLCCs, granting it control over roughly 10% of the global VLCC fleet. Sinokor has specialized in providing shuttle runs for UAE crude exports and offering floating storage capacity amid the ongoing conflict.