Renewed U.S. strikes on Iranian military targets and continued attacks on commercial shipping in the Strait of Hormuz are again rattling base oil and lubricant supply chains, even as the White House abandoned plans to impose transit tolls on vessels using the strategic waterway.
The U.S. on Wednesday intensified military operations and reimposed a naval blockade on Iranian ports, while Tehran continued to threaten shipping and regional energy exports.
The escalating conflict has kept oil markets and tanker operators on edge over the security of one of the world’s most important energy corridors.
President Donald Trump reversed his proposal to impose a 20% transit fee on ships using the Strait of Hormuz less than 24 hours after announcing it, saying the U.S. would instead pursue trade and investment agreements with Gulf states following what he described as “highly productive conversations” with regional leaders.
The reversal removes the prospect of an additional cost for tanker operators, although the blockade on vessels linked to Iranian ports remains in force.
“This is exactly the kind of policy whiplash that makes it impossible for businesses in the base oil market to plan,” William Stern, founder and CEO of small business finance firm Cardiff, told Lube Report. “One day there’s a proposed 20% toll on global shipping. The next day it’s gone. Companies that depend on imports, energy and logistics can’t build budgets around policies that change overnight.”