fuels

March 16 (Asia Today) — A bold bet by a South Korean shipping heir on ultra-large oil tankers is paying off handsomely as the war involving Iran disrupts global energy markets and drives tanker demand sharply higher.

Bloomberg reported that Sinokor Merchant Marine, a major South Korean shipping company, positioned itself to profit from the crisis after securing a large fleet of very large crude carriers (VLCCs) months before the conflict escalated.

The strategy was led by Jeong Ga-hyun, a director at Sinokor Petrochemical and the son of Sinokor Chairman Jeong Tae-soon, according to the report.

Bloomberg described the move as an unprecedented large-scale bet in the global tanker market, executed well before the outbreak of the Iran conflict.

Tankers deployed to Gulf before war

On Jan. 29, weeks before the war erupted in late February, Sinokor reportedly deployed at least six empty VLCCs to the Persian Gulf, positioning them to wait for cargo.

After disruptions in the Strait of Hormuz pushed tanker demand and charter rates sharply higher, the strategy began generating massive returns.

The Strait of Hormuz is one of the world’s most critical energy chokepoints, handling roughly 20% of global oil shipments.

Tanker rates surge to $500,000 a day

With oil exports disrupted and storage facilities across the Middle East filling rapidly, oil producers have increasingly turned to tankers as floating storage units.

According to Bloomberg, Sinokor is now chartering vessels for about $500,000 per day, roughly ten times last year’s average tanker rates.

Industry estimates suggest that by late February the company controlled around 150 VLCCs, representing roughly 40% of available tankers not already tied up in sanctions or long-term contracts.

Quiet heir behind massive shipping strategy

Jeong is known in the shipping industry as the low-profile heir to one of South Korea’s major maritime families.

Bloomberg reported that he rarely appears publicly and is known internally for a military-style management approach. Industry anecdotes even describe him challenging employees and business partners to arm-wrestling contests.

Oil supply disruptions reshape tanker market

The Iran war has dramatically altered global oil transportation patterns, forcing ships to reroute and increasing the need for offshore storage.

Under those conditions, Sinokor’s aggressive tanker acquisition strategy is now being viewed as one of the biggest winners of the crisis, Bloomberg said.

WSJ: Sinokor among winners of Hormuz crisis

The Wall Street Journal earlier identified Sinokor as one of the companies benefiting from the Strait of Hormuz tensions.

According to the newspaper, the company purchased dozens of oil tankers and deployed some of them to the Gulf region even before the conflict intensified.

Sources told the Journal that Sinokor is leasing several vessels to ADNOC, the United Arab Emirates’ state-owned oil company, to be used as floating storage facilities.

These vessels can earn up to $500,000 per day in charter fees, the report said.

As land-based storage in Gulf oil-producing countries approaches capacity, producers have increasingly stored crude at sea. Drilling firms in Iraq and Kuwait have even slowed production due to storage shortages.

The WSJ also noted that Greek shipping magnate George Prokopiou adopted a similar strategy, sending at least five tankers to the Strait of Hormuz through his company Dynacom, which is reportedly earning up to $440,000 per day – about four times pre-war rates.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260316010004394

WASHINGTON — Russia is emerging as one of the few early economic beneficiaries of the war with Iran, as disruptions to energy infrastructure drive up demand for Russian exports and the world casts its gaze to the Middle East and away from Moscow’s war in Ukraine.

The U.S. and its European counterparts slapped severe sanctions on Russia in March 2022, barely a month into Russian President Vladimir Putin’s full-scale invasion of Ukraine. The effect was a stranglehold on Russia’s exports, depriving Putin’s war effort of at least $500 billion, experts say. But over the last week, as President Trump’s war in the Middle East choked energy markets worldwide, the White House began easing its restrictions on Moscow.

“It is traitorous conduct for you to help Russia,” California Rep. Ted Lieu (D-Torrance) said on X, demanding the Trump administration reverse course. “Russia is giving intelligence info to Iran that helps Iran target American forces.”

Crude droplets rained over Tehran after Israeli airstrikes decimated oil depots, draping the Iranian capital in a dense smog. Iranian counterattacks have also targeted refineries and oil fields in Saudi Arabia and Bahrain. Crude oil prices have surged, and traffic through the Strait of Hormuz has all but ceased, sending energy importers in search of alternate sources.

Those spikes are giving Russia, one of the world’s largest oil and gas exporters, a rare advantage. After spending a decade as the world’s most sanctioned nation over his aggression in Ukraine, Putin is finally starting to regain some leverage in global markets.

“In the current economic situation, if we refocus now on those markets that need increased supplies, we can gain a foothold there,” Putin said at a meeting at the Kremlin on Monday, according to Russian state media. “It’s important for Russian energy companies to take advantage of the current situation.”

On March 4, the Treasury Department issued a temporary 30-day waiver allowing Indian refiners to purchase Russian oil. The appeal by the Trump administration was described as a way to ease demand for Mideast oil, but was criticized as a reversal of sanctions placed against Putin meant to deny him the capital needed to fund his occupation of eastern Ukraine.

Now, Moscow is poised to press that advantage further, after Trump said Monday he will further lift sanctions on oil-producing countries to ease the trade friction and reintroduce additional oil and gas supplies. The only countries with U.S. oil sanctions are Russia, Iran and Venezuela.

“So, we have sanctions on some countries. We’re going to take those sanctions off until this straightens out,” Trump said at a news conference at his golf club in Doral, Fla. “Then, who knows, maybe we won’t have to put them on — they’ll be so much peace.”

The surprise concession to Moscow comes as reports suggest Russia is assisting Iran in targeting U.S. personnel.

Trump’s announcement followed an unscheduled hourlong call with Putin about the situation in the Middle East.

The war has also set the stage for Russia to make gains in Ukraine, as hostilities draw the global spotlight away from Kyiv and its struggle to hold back the bigger Russian army. U.S.-brokered talks between the two adversaries have been sidelined as Washington shifts focus to its war in Iran.

“At the moment, the partners’ priority and all attention are focused on the situation around Iran,” Ukrainian President Volodymyr Zelensky said on X. “We see that the Russians are now trying to manipulate the situation in the Middle East and the Gulf region to the benefit of their aggression.”

Putin is unlikely to intervene militarily on Iran’s behalf, according to Robert English, an international foreign policy expert at USC. Instead, Putin is expected to play his position carefully, reap the economic rewards, and keep focused firmly on Ukraine at a time when key air defense systems are diverted from Ukraine to the Persian Gulf.

“Russia is winning the Iran-U.S.-Israel war, at least so far. Oil and natural gas prices have soared, filling Putin’s Ukraine war chest,” he said. “Russia is gathering forces for a big spring offensive in Eastern Ukraine, and it’s not even front-page news.”

Ukraine has dispatched drone interceptors and ordered its anti-drone experts to pivot from their war with Russia to help Western allies help intercept Iranian attacks. Zelensky’s allegiance may not pay off, English said.

“When will Ukraine see the benefits of helping the U.S. with anti-drone technology? No time soon, apparently,” he said.

Even several weeks of interruption in Gulf energy supplies could bring the largest windfall to Russia, the Associated Press reported, citing energy analysts.

The economic turmoil caused by the war has exposed vulnerabilities in Europe’s energy system, particularly its lingering dependence on Russian fuel.

Despite sanctions, the European Union remains a major purchaser of Russian natural gas and crude oil. Russian gas accounted for approximately 19% of E.U. gas imports in 2025. Allied Europeans have agreed to completely stop importing Russian liquefied natural gas, oil and pipeline gas by late 2027.

Putin expressed no desire Monday to rescue the European market now that U.S.-Israeli escalations and Iranian retaliation have choked oil production and shipping. The Russian president instead proposed to divert volumes away from the European market “to more promising areas” like the Asia-Pacific region, Slovakia and Hungary, which he said were “reliable counterparties.”

European leaders have been criticized for being “stunned, sidelined, and disunited” since hostilities began in late February. Excluded from the initial military planning by the U.S. and Israel, Europe entered the conflict with gas storage at only 30% capacity, the lowest levels in years. Instead of bold action, English said, European leaders have quarreled over internal divisions and rivalries.

“Sky-high energy prices are the underlying cause of many of these frictions, as Europe struggles now more than ever to find affordable alternatives to the cheap Russian petroleum,” English said.

Antonio Costa, president of the European Council, told European leaders in Brussels on Tuesday that rising energy prices and the world’s shifting attention risk strengthening the Kremlin at a critical moment in the war in Ukraine.

“So far, there is only one winner in this war,” Costa said. “Russia.”