Oil Prices Jump on Reports of Possible Israeli Strike on Iranian Nuclear Facilities

Oil prices rose over 1% following reports that Israel may be preparing to strike Iranian nuclear facilities, raising concerns about potential supply disruptions in the Middle East. Brent crude for July rose 86 cents to $66.24, and WTI crude climbed 90 cents to $62.93 per barrel. The news, reported by CNN, cited U.S. intelligence suggesting that Israel is preparing for such an attack, though no final decision has been made. Iran, OPEC's third-largest producer, could retaliate by blocking the Strait of Hormuz, a key route for Gulf oil exports. Despite geopolitical concerns, U.S. crude inventories rose by 2.5 million barrels last week, according to API figures, though gasoline and distillate stocks fell. Investors await official U.S. stockpile data from the Energy Information Administration for confirmation. In a separate development, Kazakhstan increased its oil output by 2% in May, defying OPEC+ pressure to reduce production. The combination of supply concerns and inventory movements continues to influence oil market volatility.

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EU Slaps Sanctions on 189 Shadow Fleet Tankers in Largest Crackdown Yet on Russian Oil Trade

The European Union has unveiled its most extensive sanctions package yet, targeting 189 vessels tied to Russia’s shadow fleet, bringing the total to 342 blacklisted ships. The 17th round of sanctions also includes Russian oil giant Surgutneftegas and companies linked to illicit tanker operations and ship-to-ship transfers. Among those sanctioned is Russian insurer VSK, which provides coverage for shadow fleet tankers. Dubai-based Eiger Shipping DMCC and UAE-based Moonlight Shipmanagement were also hit for operating unsafely and masking ship identities. UK authorities sanctioned shipping financier John Ormerod for arranging deals involving 25 shadow tankers financed through Eiger. Hong Kong’s Prominent Shipmanagement was blacklisted, with its fleet including former Sovcomflot-managed vessels like the Vega, Capella, and Atlas (now renamed Arcadia). These tankers were accused of sailing with AIS transponders off, lacking proper insurance, and violating maritime safety norms. Despite Western sanctions, Russia has rerouted oil exports to India, China, and Turkey, though its fossil fuel revenues have dropped significantly compared to 2022 and 2023.

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Stronger U.S. Hurricane Season Threatens Oil Supply Stability

The U.S. Energy Information Administration (EIA) warns that a stronger-than-average hurricane season could lead to significant oil and fuel supply disruptions. Much of U.S. oil production and refining is concentrated along the Gulf Coast, a region highly vulnerable to hurricanes. The EIA estimates that over 1 million barrels per day of refining capacity—about 5% of U.S. petroleum consumption—could be preemptively shut down during major storms. The hurricane season runs from June to November, and Colorado State University expects around 17 named storms, compared to the historical average of 14. AccuWeather predicts three to six storms could directly impact the U.S. this season. In 2023, five hurricanes made landfall, disrupting millions of barrels in oil and gas production and causing supply issues in states like Florida. Hurricane-driven evacuations can also disrupt fuel supply chains, as seen during Hurricane Milton last year. Overall, the EIA highlights increased storm activity as a key risk factor for U.S. energy markets this year.

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Sinokor Poised to Charter CMB.Tech’s Sold VLCC ‘Hakone’ Amid Tanker Market Gains

The 303,000-dwt VLCC Hakone (built 2010), recently sold by Belgium’s CMB.Tech, is reportedly heading to South Korean firm Sinokor Maritime via a Dubai-based buyer. The vessel will be chartered at $45,000 per day for one year, aligning with current spot rates for Middle East–Asia routes. Though Hakone is a non-scrubber tanker, it’s valued by VesselsValue at nearly $58 million, while brokers suggest it sold for $60 million. CMB.Tech had sold three VLCCs in April, including Hakone, and declared a combined capital gain of $96.7 million. Sinokor is also said to have recently sold its 307,000-dwt Pacific Loyalty (built 2006) to Chinese interests for $42 million, up from its $32.75 million acquisition price in 2022. The tanker was previously refinanced through a sale-leaseback deal and repurchased, and is listed as operated by Lucky Maritime — Sinokor’s joint venture with Trafigura. Sinokor retains 18 VLCCs and has recently expanded its term cover amid rising spot rates. Recent charters include AET’s Eagle Venice at $52,500/day and Evalend Shipping’s Babylon at $54,500/day.

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India to Invest $10 Billion in Domestic Oil Tanker Fleet to Boost Energy Security and Shipbuilding

India plans to spend $10 billion by 2040 to build 112 crude oil tankers as part of a strategy to strengthen its energy security and develop a homegrown shipping industry. The country, the world’s third-largest oil importer, currently relies on aging, chartered vessels, but aims to replace these with locally built ships. The first phase includes purchasing 79 tankers, with 10 orders expected this month and a preference for medium-range vessels. Only Indian-built ships — even via foreign partnerships — will be considered. The initiative aligns with India’s expansion of oil refining capacity from 250 million to 450 million tons by 2030. India hopes to raise the share of domestically built tankers in its fleet from 5% today to 69% by 2047. The plan also includes boosting shipbuilding for coal, fertilizer, and steel transport. Collaborations with global shipbuilders from South Korea and Japan are underway to help scale the local industry and reduce reliance on Chinese maritime services.

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Hafnia and Cargill Launch Seascale Energy Bunker Venture to Deliver Sustainable Marine Fuel

Hafnia and Cargill have officially launched their 50/50 joint bunker fuel venture, Seascale Energy, after receiving final regulatory approval. Hafnia CEO Mikael Skov announced the start of trading this week, highlighting the company's mission to offer innovative and sustainable marine fuel solutions. Seascale merges Cargill’s Pure Marine Fuels and Hafnia’s Bunker Alliance, combining about 8 million tonnes of annual fuel volumes, placing it among the top 10 bunker suppliers globally. The company is led by co-CEOs Peter Grunwaldt from Hafnia and Olivier Josse from Cargill. Board members include executives from both parent companies, such as Skov, Cargill’s Jan Dieleman, Eric Aboussouan, and Peter Kolding. The venture distinguishes itself with deep understanding of bunker buyer pain points, drawn from both groups' large shipping fleets. Seascale operates with over 25 team members and offices in Singapore, Geneva, Copenhagen, and Houston. The launch follows Maersk Tankers’ exit from Pure Marine Fuels, though it still partners with Cargill in other ventures.

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Qatar Confirms First LNG Expansion Cargoes Will Begin by Mid-2026

Qatar has confirmed that it will begin exporting liquefied natural gas (LNG) from its North Field East expansion project by mid-2026. The announcement was made by Energy Minister Saad Sherida Al-Kaabi at the Qatar Economic Forum in Doha. The project will increase Qatar’s annual LNG production capacity from 77 million tons to 110 million tons. This timeline is closely watched by global energy markets, especially amid high demand and delays in other LNG projects worldwide. Europe, which is still adapting to reduced Russian gas supplies, and several Asian countries with growing energy needs, are particularly impacted by such developments. Precise startup timing can significantly affect seasonal supply planning, especially for the winter heating and summer cooling seasons. While QatarEnergy’s website previously stated a 2026 launch, this is the first confirmation of a mid-year target. Analysts, including BloombergNEF, had projected July 2026 as the likely start date for LNG shipments.