Global Tanker Shipping Profit Hits $36 Billion Record in Q1 Amid Hormuz Strait Conflict, But Rates Face Collapse Risk

According to Financial Times, global oil tanker shipping profit reached a record $36 billion in the first quarter due to February's conflict and Iran's blockade of the Strait of Hormuz. However, as the U.S. and Iran negotiate to reopen the critical shipping lane, tanker owners face the risk of freight rates collapsing.

The blockade left over 160 tankers stranded in the Persian Gulf, which temporarily pushed daily rental rates for large tankers to $386,685. Following recent negotiations, rates have fallen to $55,000–$95,000 per day but remain elevated above historical averages of $30,000–$40,000.