US EditionWhat to know about the Strait of Hormuz, a key passageway essential for global energy supply
Sinokor controls nearly 40% of available large crude carriers and demands $20 per barrel amid disrupted tanker traffic caused by Iran-related conflict and navigation interference.
- Sinokor, on March 2, seeking 700 Worldscale for Middle East-to-China VLCC voyages, a threefold increase from Feb. 27, equates to about $20 a barrel.
- Since Feb. 28, the widening Iran war has disrupted tanker traffic through the Strait of Hormuz, sharply reducing flows and pushing VLCC rates to 700 Worldscale as satellite disruptions and reported attacks forced vessels to pool.
- One competitor estimates Sinokor controls about 150 vessels, nearly 40% of ships for charter, while a Greece-controlled ship leased at 525 Worldscale earns $350,000 daily.
- Tanker flows dwindled and vessels pooled on either side of the Strait, while oil prices jumped about 6% and insurers cancelled war-risk cover, leaving at least four tankers damaged.
- The Strait of Hormuz handles about a fifth of world oil, and the U.S. Energy Information Administration says most volumes lack alternative exits; a month-or-more closure could push crude well into triple digits, Hakan Kaya warned.
26 Articles
26 Articles
Associated Press News
What to know about the Strait of Hormuz, a key passageway essential for global energy supply
Oil prices are up sharply as the widening Iran war disrupted tanker traffic through the Strait of Hormuz, highlighting how important the passageway is to the world’s oil supply.
Why the Iran war will accelerate China’s push to become an ‘energy powerhouse’
The escalating conflict in the Middle East – which is sending oil prices soaring and disrupting shipping traffic along the Strait of Hormuz – should not pose an immediate threat to China’s crude supply, but will add urgency to the country’s energy security drive, analysts said. Since the United States and Israel launched strikes against Iran over the weekend, commercial traffic has largely come to a standstill along the Strait of Hormuz – a wate…
Missile fears slow traffic in the Strait of Hormuz – energy prices rise “The Strait of Hormuz is de facto closed.” This is the message from Arne Lohmann Rasmussen, chief analyst at Global Risk Management.
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