Oil Shipping Costs Top $20 a Barrel as Hormuz Risks Raise Inflation

Crude oil shipping costs have climbed above $20 a barrel from about $3 a year earlier, adding inflation pressure that can affect energy markets and rate-sensitive assets.

Global average costs now exceed $20 per barrel, while costs on major Middle East routes are above $35. The increase includes about $7 per barrel from war-risk premiums linked to the Strait of Hormuz, $4 from ship-to-ship transfers, $4 from higher marine fuel, $3 from less efficient tanker use and rerouting, and $2 from reduced availability of Iranian tankers.

The added shipping burden has also widened regional crude-price differences. The Brent-WTI spread recently reached about $14 a barrel, compared with a typical level near $5.

Asian refiners are especially exposed to higher delivery costs, and some European refiners have begun reducing crude imports and processing volumes. The surge adds energy-cost and inflation pressure that can shape interest-rate expectations and sentiment across broader risk assets, including crypto markets.