Daily spot charter rates for LNG carriers have surged from approximately $40,000 to $300,000 as conflict disrupts global energy routes. The ongoing military engagement between the United States, Israel, and Iran has effectively shut the Strait of Hormuz, a critical oil passage, contributing to rising oil prices and broader market volatility.
Liquefied natural gas shipping rates have skyrocketed as the U.S.-Israeli war with Iran enters its second week. According to shipbroker Fearnleys’ latest weekly LNG report, daily spot charter rates for 174,000-cubic-meter carriers on the U.S. Gulf-Europe route have climbed to about $300,000 per day.
This represents an increase of roughly $260,000 compared to the previous week. The report also stated that charterers are now paying as much as 10 times last week’s levels to secure prompt tonnage as markets prepare for potential Middle East supply disruptions.
The strategic Strait of Hormuz has been effectively closed since military strikes began last Saturday. This passage off Iran’s southern coast normally carries an estimated twenty percent of the world’s oil.
The market impact is immediate, with Brent crude oil settling at $81.40 a barrel this Tuesday. That price reflects a single-session gain of 4.7 percent.
Broader financial markets are experiencing significant volatility due to the ongoing conflict. U.S. stocks have fallen over the past week as the war intensifies.
Conversely, the U.S. dollar has strengthened notably amid the turmoil. The DXY index reached a new peak of 99 after stagnating for more than seven months.
