Earnings for very large crude carriers on the Middle East-to-Asia route have reached nearly $510,000 per day by mid-August 2026, representing a tenfold increase from historical levels of $20,000 to $60,000 daily. The Iran conflict, which escalated with US and Israeli military strikes on February 28, has turned the Strait of Hormuz into a major bottleneck as 20% of global oil flows through this narrow waterway. South Korean company Sinokor Merchant Marine spent between $5.9 billion and $7 billion to acquire approximately 73 very large crude carriers in 2026, controlling roughly 10% of the global VLCC fleet. Since new tanker orders take two to three years from contract to delivery, supply cannot quickly adapt to increased demand, keeping rates at exceptional levels.
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