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CommoditiesHigh Impact•20 February 2026•

1 min read

Supertanker Rates Surge to 2020 Highs Amid Strait of Hormuz Tensions

Infographic of oil tankers and the Strait of Hormuz map with text showing a 9% oil price increase to 104.

Earnings for Very Large Crude Carriers (VLCC) on the Middle East-to-China route have tripled this year, reaching approximately $151,208 per day. This surge marks the highest level since 2020, driven by escalating geopolitical risks and a massive US military buildup in the region. Market anxiety intensified after President Trump issued a 10-15 day ultimatum to Iran to secure a new nuclear deal or face severe consequences. In response, Brent crude futures climbed to a six-month high, trading above $71 per barrel as traders price in a significant war risk premium. The current US military presence is reportedly the largest since 2003, heightening fears of potential disruptions to the global oil supply. With 20% of the world's oil passing through the Strait of Hormuz, shipping equities and safe-haven assets like gold are seeing increased investor interest.