Reliance Industries charters supertanker at record $24 million freight for Iraqi crude

India's Reliance Industries has agreed to pay a record $23‑25 million to charter a VLCC from South Korean shipowner Sinokor for loading about 2 million barrels of Iraqi crude. The freight was set at Worldscale 1200, roughly twelve times the benchmark rate, reflecting a sharp rise in shipping costs.

The surge follows heightened security risks in the Strait of Hormuz and a sharp drop in vessels willing to transit the route after the US‑Iran conflict began. Iraq's State Oil Marketing Organization (SOMO) is offering the crude at a $25‑30 per barrel discount to Dubai benchmarks, partially offsetting the premium freight. Despite the high charter cost, Reliance expects overall savings and the deal highlights broader disruption in global tanker markets.