LNG shipping rates have surged from $40,000 to $300,000 per day as the US-Israeli war with Iran continues to disrupt global energy markets. The war is entering its second week of back and forth between the United States/Israel, and Iran, with oil prices beginning to boom in response.
According to shipbroker Fearnleys’ latest weekly LNG report, cited by Riviera Maritime Media, daily spot charter rates for 174,000-cubic-meter LNG carriers along the U.S. Gulf-Europe route have climbed to approximately $300,000 per day, up about $260,000 compared with last week. In addition to the LNG shipping rates boom, Fearnleys said charterers are now paying as much as 10 times last week’s levels to secure prompt tonnage as the market braces for a potential disruption of LNG flows from the Middle East.
Furthermore, the Strait of Hormuz — the passage off Iran’s southern coast that carries about 20% of the world’s oil — has been effectively shut since U.S.-Israeli strikes on Iran began Saturday. Shell gasoline price today is already reflecting the damage: Brent crude settled at $81.40 a barrel on Tuesday, up 4.7% in a single session.
The ongoing US-Iran war continues to heavily impact several global markets. US stocks have fallen in the past week as the war intensifies. On the other hand, the US dollar has been working its way up the radar. The DXY index has hit a new peak amid the evolving war dynamics, hitting a new value of 99 after stagnating for more than 7 months.