Tanker owners profit as Strait of Hormuz closure drives up charter rates

The blockade of the Strait of Hormuz, triggered by a U.S.‑Israel attack on Iran, has halted the flow of roughly 16‑20 million barrels of oil per day through the narrow waterway. With the channel closed, the global fleet of oil tankers has seen a sharp reduction in available cargo space, pushing charter rates higher.

Broker Clarksons reports that shipping profits surged to $36 billion in the first quarter, eclipsing the previous record of $26 billion set in 2022. Tanker owners anticipate further rate declines only if the strait reopens, prompting them to order new vessels – the highest number of large‑capacity tankers ordered this year since the start of the pandemic. The higher earnings are also prompting owners to divert ships around the Cape of Good Hope to avoid conflict zones, further limiting capacity and sustaining price pressures on oil transport.

Polish authorities responded to rising fuel prices by introducing a temporary price‑cap scheme, yet the underlying supply disruption remains tied to the ongoing geopolitical tension in the region.