This is a regularly updated blog of Veson analysis related to ongoing developments in the Strait of Hormuz. Last updated March 17, 2026
Strait of Hormuz tensions drive up used vessel prices
By Rebecca Galanopoulos | March 17, 2026
Rising tensions around the Strait of Hormuz have had a significant effect on the used VLCC segment. Disruption to normal transit routes has prompted cargo owners and operators to reassess fleet positioning, with some loadings from the Arabian Gulf rerouted via the East-West pipeline to the Red Sea port of Yanbu. This rerouting has altered ton-mile demand dynamics, and periods of elevated freight rates have fed through into stronger asset valuations as owners capitalise on improved earnings.
The situation has also buoyed secondhand Tanker asset values, due to the disruption in trade flows and fleet positioning. This adds to other factors driving up used Tanker prices, including the large-scale sanctioning of vessels into the so-called dark fleet, which has progressively removed compliant tonnage from the trading supply pool and created a structural imbalance where legitimate demand has consistently outpaced available supply. Finally, the recent aggressive acquisition campaign by Korean operator Sinokor has included the purchase of 56 vessels in 2026 alone, an unprecedented level of buying activity that has further tightened supply and pushed values higher. For example, 15-year-old VLCCs of 310,000 DWT have appreciated by approximately 31.74% year-to-date, rising from USD 59.57 mil to USD 78.48 mil.
Iran conflict could send shockwaves across LPG shipping, ammonia, and energy supply chains
By Jarl Milford | March 12, 2026
Ongoing disruptions in the Strait of Hormuz continue to worry energy markets, particularly after six commercial vessels have been targeted in recent days. Vessels are still waiting for a safe passage through the strait, and the recent escalation does not point towards imminent safe transit.
This development has already led to increased energy prices, and with LPG, LNG and ammonia volumes running through this critical chokepoint, the ripple effects across global energy, petrochemicals and food production could worsen significantly the longer the situation persists.
The escalating disruptions will have significant implications for the LPG global supply chain. C.30% of global LPG is exported from the Middle East, almost all of which is headed to Asia. A major proportion of this LPG is used as a feedstock for producing other petrochemical gases used to power a variety of household consumer goods, including clothes, carpets and dishwashers.
If the transit disruption continues, we could see not only higher prices on a variety of these goods but could ultimately risk supply shortages. We are already seeing Asian crackers reducing operating rates and some declaring force majeure because of the ongoing conflict.
Ammonia trade is also facing disruptions, with c.25% of global ammonia exported from the region, half of which goes to India. C.70% of global ammonia production is used for producing fertilizers. With higher natural gas prices in Asia, we could see less ammonia produced and available for global trade, which could hurt food production in India and other Asian countries.
LNG shipping is also heavily affected, with c.20% exported from the Middle East with c.90% headed to Asia. The gas is mainly used for power generation, and with competition from Europe for US LNG supply, we might see increased use of other energy sources, such as coal. For countries with less fuel-switching flexibility it could pose a serious energy security concern.
Vessel tracking data from Qatar’s Ras Laffan port illustrates the dramatic impact of the Middle East conflict on LNG exports. Daily LNG vessel calls at the terminal averaged 6-8 calls per day through January and February, before collapsing to near zero earlier this month following attacks on the facility.
