The Iran war is minting new one-day millionaires: oil tankers sailing across the Strait of Hormuz

Key Points:

• The cost to transport oil across the Strait of Hormuz from the Persian Gulf to China has surged to over $1 million per day, driven by heightened geopolitical risks and increased demand amid the Iran war.
• Attacks on commercial ships and rising insurance premiums, now about 10% of vessel value, have contributed significantly to soaring shipping costs and reduced traffic through this key chokepoint.
• Shipping companies expanding their fleets and consolidating market control are benefiting from the crisis by charging premium rates, while refineries and consumers face higher costs due to increased freight and crude prices.
• Major shipbrokers like Clarksons have reported record profits linked to the conflict, and oil freight funds such as Breakwave Tanker Shipping ETF have seen extraordinary gains, reflecting strong investor confidence in the shipping sector amid geopolitical instability.
• Overall, the Iran war has created a lucrative environment for maritime shipping firms, turning them into some of the biggest financial winners of the ongoing conflict.