The crude tanker market strengthened overall, driven by geopolitical tensions and tightening Atlantic tonnage. VLCC owners reacted to Houthi threats against Saudi energy infrastructure by focusing on Atlantic opportunities, creating a Red Sea premium and boosting interest in US Gulf and Atlantic cargoes. This reduced vessel availability and lifted rates, including a notable increase in Brazil business. Owners remained constructive despite uncertainty east of Suez.
Suezmax markets improved modestly, supported by stronger US Gulf activity and rising Aframax earnings. West Africa and Guyana routes edged higher, while Suezmaxes became an increasingly attractive alternative to expensive Aframaxes. However, sparse activity east of Suez and the possibility of ballast vessels returning West could eventually weigh on freight levels. Mediterranean and North Sea Aframax markets both gained momentum on the back of tight vessel supply, firm neighbouring markets, and strong US Gulf earnings, leaving owners in a favourable negotiating position.
Product tanker markets were dominated by conflict-related uncertainty in the Middle East. LR2 and LR1 sectors in the Arabian Gulf remained weak, with fixing volumes falling sharply amid tensions involving Iran, the Strait of Hormuz, and Red Sea traffic. War-risk premiums have yet to emerge, and both markets are experiencing severe paralysis with little spot activity or rate support.
MR markets showed significant regional divergence. Arabian Gulf MRs remained under pressure from vessel attacks, limited cargo flows, and weak sentiment, although rates appear close to a floor. North Asia performed better for most of the week thanks to a tight vessel list before softening late on, while Southeast Asia remained oversupplied. In contrast, Mediterranean and Northwest European MR markets strengthened considerably as Far East demand returned, vessels repositioned elsewhere, tonnage tightened, and owners gained leverage, pointing to a firmer outlook for the coming week.