Iran says a supertanker hit a mine in Hormuz as the cost of crossing the strait sets records

Iran’s Islamic Revolutionary Guard Corps said on Saturday that an oil supertanker struck a naval mine and exploded in the Strait of Hormuz². The Guards’ navy said the vessel was carrying crude oil and caught fire¹. Iranian state outlets described the ship as a violating or offending supertanker that was attempting to pass through the strait by an unauthorised route, and said it was burning^4,8.

These accounts are the Iranian government’s. The Guards did not specify the tanker’s name or flag, and the reports rest on Iranian state media⁷. One outside report of the claim says only that the tanker exploded and caught fire after striking a naval mine, attributing it to the Revolutionary Guards⁵.

US Central Command said on Friday that it had redirected 133 commercial vessels as of 9 October as it enforces a blockade of Iran^9,10.

Why it matters to investors

The price of moving a cargo through the strait is being repriced day by day. Freight rates for cargoes crossing the Strait of Hormuz hit a record high of 1.3 million dollars a day, up from a daily rate of 20,000 to 50,000 dollars last year⁶.

Crews are being paid accordingly. Shipping companies are offering captains 100k US dollars a month to transit the strait, and crews who cross are described as almost being viewed as mercenaries^3,6.

The risk comes from both directions at once. While the US intercepts vessels attempting to trade with Iran, the Revolutionary Guards target ships sailing in the strait and harass them, according to one account³.

What to watch

Watch for independent identification of the burning tanker. Until the vessel is named, the mine claim stands on Iranian statements alone, and the Guards have not given its name or flag^4,7.

Watch the redirection count. Centcom’s figure of 133 vessels is a measure of how much traffic is being moved out of its intended route, and it is dated to 9 October⁹.

And watch the freight market. A daily rate at a record of 1.3 million dollars, against 20,000 to 50,000 dollars a year ago, is the clearest running price of the risk, and it feeds into fuel costs wherever those cargoes land⁶.