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Oil and LNG Shipping Rates Soar as Iran Threatens Strait of Hormuz Closure

Global oil and gas shipping costs surged to record levels as Iran vowed to close the Strait of Hormuz, rattling energy markets.

Supertanker rates in the Middle East hit all-time highs after Tehran targeted vessels transiting the strategic waterway between Iran and Oman.

The Strait carries roughly one-fifth of global oil consumption and significant LNG volumes, making disruptions a major threat to global energy supply.

Brent crude has jumped nearly 10% this week as conflict-driven shutdowns intensified fears of prolonged regional instability.

Freight rates for very large crude carriers shipping oil to China soared to $423,736 per day, doubling from Friday, according to LSEG data.

Iranian officials warned the Strait was closed and threatened to fire on passing ships, prompting precautionary shutdowns across Gulf energy facilities.

LNG tanker rates climbed more than 40%, with analysts warning spot prices could exceed $100,000 per day amid tight vessel availability.

Shipping firms activated contingency plans as bunker sales slowed in Fujairah, underscoring mounting pressure on global trade routes.

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