Middle East Conflict: Shipping Rates Soar to Record Levels

VLCC supertanker rates have reached historic highs as hundreds of ships remain stranded in the Persian Gulf. Insurance companies are withdrawing coverage for transits in the region, further increasing costs.

Rates are now approaching $500,000, while war risk premiums are skyrocketing. Maritime traffic is decreasing, and regional ports are under pressure.

The duration and escalation of hostilities will determine future Brent prices. In the event of a prolonged disruption, the price of Brent could reach $120 a barrel, affecting global trade and supply chains.

Logistics companies are considering alternative land transport and ports, while major energy producing and importing countries are considering bypassing through pipelines and new sea routes.