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‘Back to square one’ for crude markets after Iranian attacks on shuttle VLCCs

  • Three VLCCs involved in the shuttle service between inside the MEG and the Gulf of Oman have been attacked by Iran in the past week
  • Earlier optimism on the strait’s reopening pulled more tonnage toward the MEG, creating fleet inefficiencies that should help support rates
  • MEG VLCC indexes have risen, although there is ongoing scepticism on the numbers; Atlantic basin VLCC indexes have been relatively unchanged, at over $100,000 per day

The Omani route shuttle service has been a key exit conduit for crude cargoes during the Hormuz crisis. Iran has now attacked three VLCCs involved in shuttling, two on Monday and one on July 7. Their targeting is probably not a coincidence

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