Iran's war has triggered a global oil shipping crisis, and a once-bankrupt American family oil trading firm is staking $2 billion on this supply chain reshuffle.

PIF Energy plans to acquire 15 ageing supertankers to haul Middle Eastern crude through the high-risk Strait of Hormuz, a move that comes as the global diesel shortage deepens and tanker freight rates soar, with VLCC daily charter rates already hitting a historic high of $1.3 million and second-hand vessel prices unusually surpassing newbuild prices.

The Iran war is reshaping the global oil shipping landscape, and one US oil trader is placing a rare, hefty bet on it.

According to a Wednesday report by the UK's Financial Times, Dallas-based PIF Energy CEO Ben Morrow said the company is spending $2 billion to acquire a fleet of as many as 15 ageing supertankers, aiming to move crude from Iraq and Saudi Aramco through the Strait of Hormuz to refiners in India, Indonesia and Europe.

The move comes as the global diesel shortage continues to worsen and tanker freight rates spike to historic extremes, underscoring the market's intense thirst for scarce shipping capacity. Meanwhile, according to Bloomberg data, the cost of chartering a Very Large Crude Carrier (VLCC) to ship US crude to Asia has risen to $77 million, compared with a 2025 full-year average of just $9.2 million.

For investors, this bet reflects the structural distortions in the current oil shipping market: second-hand vessel prices have unusually overtaken newbuild prices, soaring freight rates are feeding downstream inflation, and the Trump administration's political pressure to suppress diesel prices ahead of the midterm elections is profoundly influencing the direction of the energy supply chain's restructuring.

Freight rates surge, old tankers skyrocket in value

Since the outbreak of the Iran war, the transit risks in the Strait of Hormuz have deterred a large number of shipowners, effectively compressing global tanker supply significantly. Middle East crude exports had recovered to nearly 11.9 million barrels per day by early October, but trade procedures are far more complex than before the war, with shipping times greatly extended, further squeezing effective capacity.

The supply-demand imbalance in the market has directly pushed up vessel asset values. According to shipbroker Clarksons, the average price of a 15-year-old VLCC is about $160 million, up 44% from three months ago and already higher than the $131 million newbuild price—a phenomenon of second-hand prices exceeding newbuild prices that is extremely rare in the industry. Meanwhile, captains willing to navigate through the strait are commanding monthly salaries of up to $100,000, and daily charter rates for supertankers on Middle East routes have touched a historic high of $1.3 million.

The broader shipping composite index also confirms the breadth of this rally. According to data cited by Shipping World from Clarksons, the ClarkSea Index had set record highs for four consecutive weeks as of October 2, reaching $75,658 per day, a monthly gain of 73%, with the year-to-date average up 66% year-on-year and 84% above the 10-year average. Notably, this rally is not driven by tankers alone—multiple sub-markets including LNG carriers, dry bulk carriers, container ships and car carriers are all simultaneously at "abnormal or strong" levels.

PIF Energy's "unconventional" bet

Ben Morrow characterized the investment as an "unconventional business opportunity." He said PIF Energy (the name derives from "Pay It Forward") primarily engaged in crude trading for Iraq's State Oil Marketing Organization (SOMO) before the war, and is expected to trade about 25 million barrels of Iraqi crude in October, making it one of the country's important crude traders.

Unlike the historical convention where traders typically charter vessels rather than own assets, Morrow chose to directly purchase a fleet. He said the fleet would receive escort guidance from a "Tier 1 security team" authorized by the US government. In response, a US Central Command spokesperson said the command had not provided PIF Energy with "any dedicated support," only "coordinated protection for transiting commercial vessels in accordance with previous statements."

Morrow acknowledged that the deal would require "perfect insurance arrangements, perfect banking arrangements and security guarantees" to work, and said it was not just a commercial act but about "keeping oil flowing and truly helping the world." He himself went through bankruptcy six years ago before founding this family trading company.

Washington's political calculus and Iraq's real predicament

Behind this investment lies the Trump administration's urgent need to suppress inflation ahead of the midterm elections. Rising diesel prices are hitting the industrial and agricultural sectors, while the combined effects of the Iran war and the Ukraine conflict continue to disrupt global diesel supplies. Against this backdrop, the US oil industry has pressured the government to push relevant parties to expand diesel exports to ease the global shortage.

An industry figure familiar with the discussions said, "Relevant parties have a role to play in boosting diesel exports and replenishing supply to the market." Morrow also said he believes China will gradually increase refined product exports and described it as a "key hub" for the global refining shortage.

Iraq's situation is more passive. Lacking its own tanker fleet, Iraq has had to offer substantial discounts to buyers to maintain crude sales. Trump met with Iraqi Prime Minister Ali al-Zaidi at the White House in July this year, praising him for "doing a great job" and saying Iraq has "tremendous potential" because of its oil resources. Meanwhile, US companies are accelerating their push into Iraq's energy sector—Chevron is in advanced talks to build a pipeline to Syria, and Dallas-based private energy company HKN Energy has signed an agreement to develop the Hamrin oilfield.

Risk warning and disclaimer

Markets carry risk, and investment requires caution. This article does not constitute personal investment advice and does not take into account individual users' specific investment objectives, financial situations or needs. Users should consider whether any opinions, views or conclusions in this article are suitable for their particular circumstances. Investment based on this article is at one's own risk.