Gulf Tanker Rates Hit Records as U.S.-Iran Ceasefire Ends Blockade

Oil tanker hire rates in the Gulf region have reached record highs after Iran and the United States agreed to a 60-day ceasefire to end a blockade of the Strait of Hormuz that began on February 28. Daily hire rates for tankers outside the strait rose to $190,500 from $106,500 a week prior, while very large crude carriers (VLCCs) saw record average daily earnings of nearly $470,000.

The surge is driven by a severe vessel shortage, as approximately 100 tankers remain stuck inside the Gulf, though the International Maritime Organization reports security assurances may now allow hundreds of stranded vessels to exit. Demand has been further accelerated by the Abu Dhabi National Oil Company, which launched a flurry of June tenders, and Indian refiners like Reliance Industries seeking to resolve months of supply disruptions.

Diplomatic progress has led to a framework agreement to end regional hostilities and a 60-day U.S. sanctions waiver allowing investors and refiners to purchase Iranian oil. Consequently, global oil prices have declined, with Brent crude falling toward $76 per barrel. While shipping costs have spiked, war risk insurance costs dropped from 5% to approximately 3% of vessel value. Meanwhile, Iran and Oman have begun negotiating a joint framework for managing transit through the Strait of Hormuz, raising concerns over potential passage tolls.