Global Oil Watch: Tankers Avoid Strait of Hormuz After U.S. Iran Strikes/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Following U.S. strikes on Iran, at least two supertankers—Coswisdom Lake and South Loyalty—reversed course near the Strait of Hormuz, while many vessels delay entry or reroute to reduce exposure. Tanker shipping rates have more than doubled, and crude oil prices surged, as the chokepoint channeling 20% of global oil faces heightened geopolitical risk. Companies are now instructing ships to minimize time in the strait, pause near sideline ports or navigate in safer waters off Oman amid fears of Iranian retaliation, including a potential strait closure.
Quick Look
- What happened? Supertankers are avoiding the Strait of Hormuz after U.S. strikes triggered fears of Iranian retaliation.
- Why it matters: Nearly one-fifth of the world’s oil supply flows through the strait, so tanker deviations and delays threaten global energy stability.
- Market impact: Freight costs for supertankers have more than doubled; crude prices briefly surged toward $100/barrel before softening.
Global Oil Watch: Tankers Avoid Strait of Hormuz After U.S. Iran Strikes
Deep Look
Risky Waters, Slippery Seas
After U.S. bombs hit Iranian nuclear facilities, shiptracking systems—such as Kpler and LSEG—showed at least two supertankers performing sharp U-turns just before entering the Strait of Hormuz. The Coswisdom Lake arrived, paused, turned south, and then reversed north again en route to Zirku, UAE. Similarly, the South Loyalty reversed course before reaching the Iraq loading terminal at Basra.
Bubble in Shipping and Fuel Markets
The market reaction has been swift. Supertanker charter rates have doubled, surpassing $60,000 per day, reflecting deep anxiety about vulnerable shipping. Crude oil prices briefly touched five-month highs—Brent and WTI prices spiked about 4% on Sunday night before settling slightly higher in early trading. The flashpoint? Iran could try to retaliate by disrupting traffic through the Strait of Hormuz, impacting 20% of global oil flow.
Navigational Shifts
Vessels are actively choosing safer waters. Tankers stick close to Oman’s side of the strait, while Iranian-flagged ships stay within Iranian coastal waters. A Japanese chemical tanker, Kohzan Maru, and oil tanker Red Ruby delayed entry, some anchoring near Fujairah, UAE. Ports like Zirku are now staging grounds for ships waiting their turn.
Proactive Measures
Shipping operators—like Taiwan’s Formosa Petrochemical, Japan’s Nippon Yusen, and Mitsui O.S.K. Lines—have issued directives: limit time in the strait, time entries for loading, and keep vessels idle offshore until it’s safe. Traders and analysts are preparing for delays. Leon Alexander of Clyde & Co notes that the industry “must diversify supply sources and routes” drawing lessons from bottlenecks in Yemen’s Red Sea crisis.
Political Shadows
Adding to the tension, Iran’s parliament has authorized a measure to potentially close the strait—though this would require formal approval from its Supreme National Security Council. Tehran has threatened such disruption before, but never enforced it. Still, the mere possibility elevates global energy risk and prompts defensive maneuvering by international shippers.
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