Hormuz Disruptions Push Shipping Stocks to Record Highs

The ongoing crisis in the Strait of Hormuz, which has persisted for months, has propelled maritime shipping stocks to the forefront of winning bets in markets during 2026, pushing them to their highest levels in over a decade as the sector benefited from disruptions that have hampered one of the world’s most critical oil trade routes. Data from Lloyd’s List Intelligence showed that a basket of 35 shares of listed shipping companies in the United States and Europe rose by approximately 68% since the beginning of the year, outperforming the S&P 500 index by more than five times, while gaining 82% over the past twelve months.

Oil tanker stocks led the gains, surging 120% since the start of the year, followed by car carrier, gas, and dry bulk shipping companies, according to CNBC, as reported by Arabiye Business. Andreas Bofelsen, Managing Director at Haven Capital Management, stated that the shipping sector offers a hedge against geopolitical disruptions, noting that maritime transport markets have previously benefited from major volatility, including the coronavirus pandemic, Houthi attacks in the Red Sea, and the Russia-Ukraine war.

Shipping companies attracted investors seeking exposure to commodity supply chains and cash-flow-generating assets, before the war with Iran added new momentum to the sector by disrupting navigation in the Strait of Hormuz. The disruptions forced oil tankers to take longer routes and increased insurance costs, effectively reducing the available supply of ships despite the continuation of global trade flows.

Stock prices reflected these developments. Danaos shares traded at their highest level since 2008 after a jump of approximately 60% this year, while Frontline and Teekay Tankers shares reached their highest levels since 2011. BW LPG hit a record high, while Seaspine Bulk Carriers and Navios Maritime Partners touched multi-year peaks, and International Seaways recorded its all-time high last week. The Breakwave Tanker Shipping ETF, which specializes in crude oil tanker futures contracts, surged by approximately 650% since the outbreak of war in the Middle East in February, with its gains exceeding 2,300% since the beginning of the year.

Nicholas Tsirogalas, CEO of Tafton Investment Management, said that the extension of sea voyage distances increased what is known as the “ton-mile” index, boosting demand for oil and chemical tankers, dry bulk carriers, and gas carriers. He added that the end of the Iranian conflict does not necessarily mean a return to pre-war trade conditions, explaining that economies that have found alternative suppliers tend to diversify their supply sources rather than reverting to previous models, aiming to reduce the risk of future disruptions.

On the other hand, John Kartsounas, founder and partner at Breakwave Advisors, warned that part of the current gains may not be sustainable, considering that a significant portion of the price increase reflects a “fear premium” associated with geopolitical tensions. He clarified that this premium could quickly recede if the Strait of Hormuz returns to normal operations, noting that the current cycle is primarily based on logistical bottlenecks, longer routes, and detained ships, rather than a genuine increase in global demand for maritime trade.