Middle Eastern oil producers are maintaining oil exports through a high-cost ship-to-ship (STS) transfer system, with benchmark freight rates for very large crude carriers (VLCCs) transporting Persian Gulf crude to China soaring to over $30 per barrel, the highest level on record. At current oil prices of approximately $105 per barrel, freight costs now exceed a quarter of the total cost. Since September, exports through the Strait of Hormuz have rebounded to about 6.5 million barrels per day, the highest level since a brief rebound following the June ceasefire.

Saudi Aramco is also increasingly relying on STS transfers, with STS transfer loadings in the Gulf of Oman expected to reach approximately 2.5 million barrels per day in September, a significant jump from 1.4 million barrels in August, accounting for about 40% of current flows through Hormuz. Keshav Lokhiya, CEO of HiLo Analytics, stated that the world is witnessing one of the largest transfers of wealth from oil producers to tanker owners in history.