The latest measures could further boost the demand for tankers
The United States has intensified its "maximum pressure" campaign against Iran by blacklisting around twenty companies and vessels involved in the covert sale of Iranian oil to China. The latest sanctions target intermediaries, inspection firms, and tankers accused of concealing the origin of Iranian crude.
Another potential opportunity for non-sanctioned tankers
With increased controls and monitoring, Chinese refiners may be compelled to cut back on their imports of Iranian oil and shift to other suppliers, likely from the Atlantic basin and other compliant regions, a trade flow change we have observed more frequently of late. This shift extends voyage distances, boosting demand in ton-miles and supporting freight rates, particularly in the VLCC and Suezmax segments.
The United States has previously stated its goal to eliminate Iran's oil exports, estimated at approximately 1.7 million barrels per day. If this measure is effectively implemented, it could increase reliance on compliant tonnage and put upward pressure on tanker utilization.
Source: Clarksons and OFAC