Gulf Shipping Costs Drop Amid Israel-Iran Ceasefire

In the aftermath of a ceasefire between Israel and Iran, shipping costs in the Gulf have significantly decreased, industry sources reported on Thursday. The recent conflict had raised fears about potential disruptions in the Strait of Hormuz, a critical oil and gas passage.

Rates for supertankers, capable of carrying two million barrels of oil each, had surged to over $60,000 a day amid tensions, before falling to approximately $50,000 a day post-ceasefire, according to freight data. An analyst, Omar Nokta from Jefferies, noted that tanker rates are retracting as hostilities between the two nations subside.

Furthermore, war risk insurance premiums have softened to 0.35-0.45%, from Monday's peak of 0.5%. The situation remains fluid, as signified by Iran's Supreme Leader, Ayatollah Ali Khamenei, who warned of possible retaliation against U.S. military bases in case of future aggression.

(With inputs from agencies.)