Middle East crude tanker rates just hit multi-decade high

March 30 ------ In March 2026, tanker rates for Very Large Crude Carriers (VLCCs) transporting oil from the Middle East to Asia reached their highest levels since at least November 2005 (when historical data began) the US Energy Information Administration (EIA) highlights.

According to the EIA, this surge followed Iran’s closure of the Strait of Hormuz on 2 March. The Strait of Hormuz—a key maritime passage connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea—is a critical chokepoint for global oil flows.

Concerns over potential attacks on vessels attempting to transit the strait, combined with the high cost of war risk insurance, drove crude tanker rates from the Middle East to all destinations to record highs. Furthermore, the effective closure of the strait has also caused a backlog of vessels trapped in the Persian Gulf after loading crude from various Gulf producers. These constrained vessels reduce global tanker availability, further pushing rates upward.

Tanker rates for shipments from the Americas, particularly the U.S. Gulf Coast, similarly reached record levels due to strong demand and the limited number of vessels available. Rates for clean tankers, which carry refined petroleum products, and for natural gas carriers have also risen.

In response, the U.S. Department of Homeland Security issued a temporary two-month waiver of the Jones Act on 17 March, specifically covering the shipment of certain energy and fertilizer products. The waiver could affect the global distribution of vessels and overall shipping capacity.

Source: safety4sea.com