Crude oil markets surged and global shipping routes reeled on Monday after U.S. airstrikes on Iranian nuclear facilities sparked fears of retaliation in the Strait of Hormuz, the world's most critical maritime oil chokepoint. Supertankers began zig-zagging, U-turning, or anchoring outside the strait, and freight rates for very large crude carriers (VLCCs) more than doubled in a week to over $60,000 per day, according to freight data.
Ship-tracking data from Kpler and LSEG showed at least two VLCCs, the Coswisdom Lake and the South Loyalty, altered course near the strait. The Coswisdom Lake, chartered by Unipec, a subsidiary of China's Sinopec, was en route to Zirku, UAE, before reversing course, circling south, then resuming its original route. The South Loyalty, bound for Iraq's Basra terminal, also U-turned and idled outside the Strait of Hormuz.
Meanwhile, a growing number of tankers rerouted closer to Omani waters or anchored near the port of Fujairah in the UAE, according to MarineTraffic data. Among them were the chemical tanker Kohzan Maru, the oil tanker Red Ruby, and the chemical carrier Marie C.
"Vessels will only enter the region when it is nearer to their loading time," said KY Lin, spokesperson for Taiwan's Formosa Petrochemical Corp. Japanese shipping companies Nippon Yusen and Mitsui O.S.K. Lines confirmed their vessels continue transiting the strait, but with orders to minimize time in the Gulf.
China responded by issuing a mandate for all domestic shipping firms to submit daily reports for vessels operating in the Strait of Hormuz, the Gulf of Oman, and the Persian Gulf. The order, announced by the China Shipowners' Association under the Ministry of Transport, requires detailed logs of ship names, voyage routes, crew sizes, and prior transits going back to the beginning of 2023.
"The ongoing tensions in the Red Sea have had widespread and profound impacts on shipping safety in surrounding waters," the association stated.
The directive came a day after Iran's parliament backed a motion to close the Strait of Hormuz in response to the U.S. bombing, though any such move would require approval from the country's Supreme National Security Council.
U.S. Secretary of State Marco Rubio urged Beijing to pressure Iran, stating in a television interview, "They heavily depend on the Strait of Hormuz for their oil."
At a Monday briefing, China's Foreign Ministry spokesman Guo Jiakun emphasized the importance of de-escalation, calling the Persian Gulf and surrounding waters "vital international corridors for goods and energy trade."
Despite heightened tensions, most analysts believe a full closure of the strait remains unlikely. "The main reason is really China," said Homayoun Falakshahi, head of crude oil analysis at Kpler. "Almost half of China's seaborne oil imports come from the Persian Gulf."
According to Kpler data, 90% of Iran's oil exports go to China, making a blockade economically self-destructive for Tehran. Additionally, a full closure would encroach on Omani waters, further complicating diplomatic fallout.
"Diversifying sources of supply and shipping routes and learning from past disruptions like the Red Sea are critical," said Leon Alexander, partner at law firm Clyde & Co.
