Global shipping stocks climbed to fresh highs during Monday’s trade, driven by surging oil tanker freight rates as ongoing tensions in the Middle East continued to disrupt shipping routes and keep transportation costs elevated.
Oil and product tanker stocks such as Torm (TRMD), Hafnia (HAFN) and Teekay Tankers (TNK) hit record highs as concerns mounted that crude oil supply disruptions linked to transit through the Strait of Hormuz could persist for longer, pushing freight rates higher.
The SonicShares Global Shipping ETF (BOAT) also reached an all-time high, as elevated transportation costs added a freight premium to oil shipments.
Meanwhile, the Breakwave Tanker Shipping ETF (BWET), which invests in near-dated crude tanker forward freight contracts, has surged dramatically this year as global crude transportation costs and tanker freight rates have soared.
CNBC’s Brian Sullivan reported that continued tensions in the Middle East had driven up oil shipping costs, adding a freight premium to the overall cost of oil beyond benchmark crude prices such as Brent and West Texas Intermediate (WTI). Both Brent and WTI crude futures touched their highest levels in two weeks during Monday morning’s trade.
Investors have increasingly turned to the maritime sector to gain exposure to commodity supply chains and cash-generative real assets, a segment that had long remained in the shadow of other investment themes. The outbreak of the Iran war, however, triggered major disruptions around the Strait of Hormuz, one of the world’s busiest oil-shipping routes.
The disruption has forced tankers to take longer routes and pushed up insurance costs, effectively tightening the supply of available vessels even as global trade continues.
Brent crude approaches $107 as Middle East tensions escalate
Brent crude, the international benchmark, climbed towards $107 a barrel on Monday after fluctuating earlier in the session. Attacks on Saudi Arabia overshadowed the prospect of additional supplies following US President Donald Trump’s remarks about Russian diesel exports and a potential ceasefire covering energy infrastructure, according to reports.
Saudi Arabia said it was responding to fresh drone and cruise missile attacks on Monday, raising security concerns following the deadly weekend attacks on Riyadh’s airport.
Attacks on tankers in the strategically important Strait of Hormuz have also intensified, even as more crude oil has been leaving the Persian Gulf. Another tanker was hit in the waterway on Monday morning, New York time, according to Iranian state media.
The Iran-aligned Houthi movement claimed responsibility for a Saturday strike on Riyadh’s international airport. The attacks came a week after Saudi-led forces in Yemen launched a campaign to retake areas held by Iran-backed Houthi militants.
Oil prices were up 70% in 2026
Global benchmark crude prices remained more than 70% higher this year as the war involving Iran continued to disrupt energy markets.
Goldman Sachs raised its Brent crude price forecast for December to $90 a barrel from $85, citing a risk premium of just over $20 a barrel, Reuters reported.
Meanwhile, months of repeated Ukrainian strikes on Russian refineries have exacerbated pressure on global fuel supplies. Trump said on Friday that he would work with Russian President Vladimir Putin to release Russian diesel into global markets.
The proposal drew bipartisan criticism in the US, while Ukrainian President Volodymyr Zelenskyy criticised the move, arguing that it would provide Russia with additional resources to sustain its war.
(With inputs from Bloomberg and Reuters)
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