S&P Global Energy reported that tanker freight rates have surged to record levels due to restricted traffic in the Strait of Hormuz and a tight supply of vessels. Since the outbreak of the US-Iran conflict on February 28, vessel transits through the strait have dropped by over 80%. The Strait of Hormuz typically handles about 20% of the world's seaborne oil and liquefied natural gas traffic. On August 27, the benchmark freight rate for LR2 tankers from the Middle East Gulf to Japan reached a record $107.72 per metric ton.