Hormuz Conflict: Freight at Record Highs

Strait Talk : Mocha Pot-shots

In this week's Strait Talk, Argus experts examine the unprecedented surge in tanker freight rates, which have doubled in September and pushed the cost of moving crude from Brazil to Asia to around $25/bl. For Asian buyers already facing tight supplies, freight is becoming a critical part of the price equation, with the delivered cost of Middle Eastern crude reaching levels that could begin to trigger demand destruction.

The discussion explores the growing security challenges facing Saudi Arabia following attacks on infrastructure and shipping routes, including the shutdown of the East-West pipeline and the capture of Yemen's Mocha port by Houthi forces. Our experts assess what these developments mean for exports from Yanbu, the future of Red Sea crude flows and the resilience of regional supply chains.

The episode also examines the continuing tanker war in the strait of Hormuz, including Iran's targeting of vessels listed by the Persian Gulf Strait Authority and whether shipowners remain willing to accept the risks of operating in one of the world's most volatile energy corridors.

🎥 Watch now for expert insight into the freight crisis reshaping global oil markets.