The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InEarnings 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.