Iran Strikes Tanker in Strait of Hormuz as Shipping Costs Hit $1M Per Day

Iran’s Islamic Revolutionary Guard Corps attacked an oil tanker in the Strait of Hormuz on September 18, claiming the Togo-flagged vessel Trend attempted an illegal passage. The strike came as shipping costs through the critical waterway hit $1.035 million per day, a record high driven by escalating attacks and war-related supply constraints. Insurance premiums for vessels have jumped to 10% of cargo value, up from 0.5% to 1% before the conflict began in February.

Two tankers hit in latest Hormuz incident

The United Kingdom Maritime Trade Operations reported two separate incidents on September 18. One tanker was struck by an unknown projectile, causing a fire that was later extinguished. Iran’s state broadcaster cited the Revolutionary Guard Corps as claiming responsibility for striking the Togo-flagged Trend due to an “illegal attempt” to transit the strait. The Guard’s navy warned that vessels attempting passage without authorization would face “destruction.” Crews were reported safe with no environmental damage.

Shipping costs soar to record levels

The cost for a large crude carrier to haul oil from the Persian Gulf to China now reaches $1.035 million per day, according to the Baltic Exchange, the first time exceeding seven figures. This compares to $208,000 per day for the same route prior to the conflict. Ioannis Papadimitriou, principal freight analyst at Vortexa, told Fortune the surge reflects both geopolitical risk and increased demand as oil prices remain above $100 per barrel. Insurance premiums have risen to about 10% of cargo value, passed directly to charterers.

Iran asserts control as war intensifies

Iran has maintained control over the Strait of Hormuz since the United States and Israel launched attacks on February 28. On September 18, hundreds of thousands of Iranians rallied in Tehran in the largest government-organized show of support since the war began. An IRGC deputy commander said Iran would not allow oil exports from any other regional country if its own exports were halted, and that the strait remained under “complete surveillance” of Iranian naval forces. The blockade and new sanctions have worsened Iran’s economy.

Commercial traffic continues to decline

Commercial shipping through the Strait of Hormuz has steadily dwindled over the war’s seven months, yet oil exports remain urgent as constrained supply drives prices higher. Fewer freighters are willing to cross the channel’s eastern side, where disruptions are most frequent. The combination of reduced traffic, heightened insurance costs, and ongoing Iranian attacks has created a sharp divide between risk-takers and cautious operators. Yemen’s Foreign Minister Afrah al-Zouba rejected Iranian support for Houthi forces, stating that restoring Yemeni state authority over ports and islands was essential to regional security.

Final Thoughts

With shipping costs at record highs and Iran asserting control over a critical global oil route, investors in energy and logistics face sustained volatility. The Strait of Hormuz blockade shows no sign of easing, making alternative supply routes and hedging strategies essential for exposed portfolios.

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