The US-Iran war in the Middle East has sent shockwaves through global energy markets, triggering a sharp surge in crude oil prices and severely disrupting maritime trade routes. With the Strait of Hormuz — a critical artery for global oil shipments — effectively shut, financial markets worldwide have come under pressure.
However, amid the volatility, investors have flocked to an unlikely winner: the cost of transporting crude oil.
An exchange-traded fund (ETF) tracking oil tanker freight rates has emerged as one of the best-performing investment vehicles during the geopolitical crisis. The Breakwave Tanker Shipping ETF (BWET), which tracks crude oil tanker freight futures, has surged over 860% so far in 2026 as disruptions in the Strait of Hormuz pushed both oil prices and shipping costs sharply higher.
What is BWET?
The Breakwave Tanker Shipping ETF (BWET) is designed to reflect the daily price movements of indices linked to the future cost of transporting crude oil by sea. The fund provides investors with unleveraged exposure to oil tanker freight futures without requiring a futures trading account.
Unlike conventional energy ETFs that track crude oil prices, BWET focuses exclusively on crude oil tanker freight rates. The fund seeks to benefit from spikes in freight futures that exceed what markets have already priced in, making it particularly sensitive to disruptions in global shipping routes.
Launched in May 2023 with an initial portfolio of approximately $30 million, BWET currently manages around $48 million in assets — a relatively small slice of the nearly $13 trillion US ETF market. The fund is listed on the NYSE Arca.
BWET’s Explosive Rally
BWET has delivered extraordinary returns amid escalating geopolitical tensions.
Since the onset of the US-Iran war in late February 2026, the ETF has surged more than 220%. Over the past three months, it has gained nearly 300%, while six-month returns stand at over 745%. On a one-year basis, the fund has delivered a staggering return of nearly 1,450%.
The rally underscores how freight markets tend to react sharply during disruptions to global shipping and maritime traffic. Any threat to oil transportation routes typically drives freight futures higher — a trend that has directly benefited BWET.
Crude oil prices at the peak of the conflict had surged by over 100% in 2026.
