Having risen more than 100% during the conflict between Israel and Iran, the cost of shipping crude from the Gulf has returned close to pre-conflict levels. The cost of hiring a very-large crude carrier (VLCC) from the Gulf to China is back around $35,000/day according to Kpler after peaking around $76,000/day on 23 June.
Around 14mn b/d of crude and condensate is exported from the Gulf through the narrow Strait of Hormuz which Iran threatened to close. The Strait is also a key passage way for refined products (MEES, 27 June). While hostilities have ended maritime security organizations like the UK Maritime Trade Operations (UKMTO) have been slow to reduce the threat level from ‘elevated’. (CONTINUED - 113 WORDS)