Shipping Oil Through Hormuz Now Costs $20 Million, Total CEO Says

The price of moving a supertanker loaded with oil through the Strait of Hormuz has surged to around $20 million, according to the chief executive of TotalEnergies SE. The figure highlights the unusually large profits available to traders and shipowners willing to operate in the strategic waterway. The Strait of Hormuz, a narrow passage between the Persian Gulf and the Gulf of Oman, is a critical route for global oil supplies. Higher costs there reflect increased risks and insurance premiums for vessels transiting the area. Patrick Pouyanné, TotalEnergies’ CEO, revealed the cost figure without providing further details on what drives the expense. Still, the number signals how much more expensive it has become to move crude through one of the world’s most vital shipping lanes. For traders and shipowners, the premium translates into significant earnings. Yet it also adds pressure on global fuel prices, as shipping costs are often passed on to buyers. TotalEnergies, one of the largest energy companies in Europe, has a major presence in the region. The company’s comments come amid ongoing tensions that have disrupted normal shipping operations near Iran and its neighbors. The $20 million figure applies to a single voyage of a very large crude carrier, a vessel capable of holding about two million barrels of oil. That means shipping costs per barrel are roughly $10—far above historical averages for the route. Industry observers note that such high freight rates may encourage more shipowners to enter the market, but security concerns could keep many away. For now, the high price of passage remains a clear measure of the region’s instability.