Shipowners Order $20 Billion in Supertankers Amid US-Iran War

Global shipowners have initiated a supertanker ordering spree valued at over $20 billion in 2026, marking the fastest pace of acquisition in at least 25 years. This surge is driven by the ongoing war between the Federal government of the United States and Iran, which has resulted in the virtual closure of the Strait of Hormuz and a drone attack on a Saudi Arabian pipeline transporting oil to the Red Sea.

These disruptions have forced refiners in Asia and Europe to diversify their supplies, shifting away from Middle Eastern sources toward the Atlantic basin. As a result, U.S. crude exports have reached record highs, with increased production also expected from Brazil, Guyana, and Argentina. To mitigate risks of Iranian attacks, oil from the Gulf is now shuttled via smaller vessels to larger tankers in the Gulf of Oman.

Demand for Very Large Crude Carriers (VLCCs) has spiked, with orders reaching between 164 and 217 vessels this year, more than double the 2025 totals. This demand, coupled with the need to renew aging fleets and the growth of a shadow fleet for sanctioned oil, has pushed VLCC spot rates from $132,000 per day in February to over $500,000 per day. Frontline CEO Lars Barstad noted that the pipeline damage has specifically forced the Government of Saudi Arabia to increase its own participation in the shipping business.