The unprecedented surge in maritime oil transportation costs has become a major factor influencing energy prices on global markets. The trend has intensified following the US attack on Iran and Iran’s closure of the Strait of Hormuz, driving up the cost of transporting oil along international routes.
The cost of transporting a barrel of oil from the US to Japan has reached approximately $40.50. This figure reflects a sharp increase in the cost of moving oil over long maritime routes. Combined with rising insurance premiums and longer shipping routes, the increase is putting additional pressure on the global energy market.
The scale of this surge is even more apparent in the transportation of large oil cargoes. The cost of shipping a 2-million-barrel cargo of crude oil from the US to Japan aboard very large crude carriers has now reached approximately $81 million, compared with about $9 million for the same cargo on the same route last year. The comparison shows that oil transportation costs have risen nearly ninefold, an increase whose effects could ripple through the energy supply chain and raise the final cost of fuel in consumer markets.
Attack on Iran and Its Consequences for Global Oil Trade
The US and the Israeli terrorist regime’s attack on Iran has affected oil transportation conditions along one of the world’s major energy routes. Increased risks to maritime passage, higher insurance costs and the need to use longer routes are raising the cost of transporting oil cargoes and imposing new constraints and expenses on global energy trade.
Under these circumstances, the warmongering of the US and the Zionist regime threatens not only Iran’s security and that of West Asia, but also global economic stability and the energy security of countries around the world. The heavy costs imposed on maritime shipping, rising insurance expenses and disruptions to oil transportation routes have consequences that extend beyond the battlefield and could increase energy costs for economies that rely on energy imports.
As this situation escalates, the consequences of the war are no longer confined to the geographical boundaries of the conflict. Its costs are being passed on to trade, production, transportation and people’s livelihoods in countries around the world.
Why Doesn’t Increased Oil Production Necessarily Lower Prices?
Increasing oil production alone is not enough to bring prices down. Oil must be transported from production sites to refineries and consumer markets, and any increase in shipping costs or restrictions on maritime routes can erode some of the benefits of increased supply.
Higher transportation costs also affect the final cost of refined products such as gasoline and diesel. Rising costs for transportation, refining and distribution can place additional pressure on fuel markets and drive up production and transportation costs across different economies.
Surplus Heavy Crude in the Americas and Supply Challenges in Asia and Europe
The surplus of heavy crude oil in the Americas, alongside difficulties securing oil supplies in Asia and Europe, is another dimension of the problem. The availability of oil resources in one region does not necessarily mean that other regions can access them easily or at low cost. Transportation expenses and restrictions on maritime routes can create a costly gap between the point of supply and the consumer market.
Overall, the ninefold increase in the cost of shipping oil from the US to Japan points to mounting pressure on global energy trade. The US attack on Iran, Iran’s closure of the Strait of Hormuz and the consequences of US and Zionist regime warmongering, compounded by rising insurance costs and longer maritime routes, have created serious risks for the global economy. Under these circumstances, increased oil production alone cannot guarantee lower prices, since the cost of delivering oil to its destination is also a major component of energy pricing.
