Persian Gulf tanker rates spike as Hormuz traffic drops on Iran conflict

Freight rates for Persian Gulf crude and product tankers have surged as transits through the Strait of Hormuz slumped amid US-Israeli strikes on Iran, with industry groups urging vessels to avoid the region or be vigilant.

Platts, part of S&P Global Energy, assessed the rate to carry a 270,000 metric ton cargo of crude from the Persian Gulf to China at $62.07/mt on March 2, up 35% from the previous assessment and up 461% from the start of the year. Platts assessed the rate to carry a 90,000 mt cargo of refined products from the Persian Gulf to UK/Continent at $68.89/mt, up 19% on the day and up 44% from the start of the year. The five-year averages for both assessments were $13.18/mt and $48.30/mt, respectively.

Tanker industry group Intertanko warned vessels to follow the advice of the Joint Maritime Information Center (JMIC) and the EU naval operation in the area EUNAVFOR Aspides, and to avoid the area as much as possible until the situation is clear, in a March 1 advisory to its members, seen by Platts.

"If possible, delay transits through the Strait of Hormuz until the situation is clearer," Intertanko said.

The International Chamber of Shipping said March 2 that it urges all ships operating in the region to conduct thorough risk assessments, maintain vigilance, and continue to monitor and act on updates issued by official state channels.

Traffic slumps

AIS signals tracked by Market Intelligence Network (MINT), part of S&P Global, show that 26 vessels navigated the Strait of Hormuz on March 1 compared to 91 on February 28 and an average of 135 per day during February 2026.

Asian markets, particularly India, face increased vulnerability to Middle East supply volatility as reliance on Gulf crude intensifies, S&P Global Commodities at Sea analysts said March 2.

Middle East barrels supplied via the Strait accounted for 41% or 2.1 million b/d of India's 2025 seaborne crude imports – led by Iraq at 919,000 b/d, CAS data showed. Indian refiners have rapidly increased sourcing of Middle Eastern grades as alternatives to Russian crude, as evidenced by a surge in Gulf-origin barrels arriving in February, the analysts said.

India imported an average of 2.623 million b/d of crude via the Strait during the first two months of the year, accounting for 52% of total imports during that time, CAS data showed.

Wider risks

Yemen's Houthis have threatened to launch new attacks against Israel and US shipping in the Red Sea and the Gulf of Aden, Lt.-Col. Socrates Ravanos, press officer for the EU naval operation in the region, said in a statement Feb. 28.

"EUNAFOR ASPIDES assets in the area of operation remain on high alert and stand ready to contribute within means and capabilities to protect lives at sea, contributing to freedom of navigation and enhancing [maritime security] through one of the most vital and vulnerable sea trade corridors," he said.

Danish shipping giant A.P. Moller-Maersk has suspended sailings through two critical Middle East waterways, rerouting its container ships around Africa's southern tip as escalating regional conflict threatens crew safety and cargo security, the company said March 1.