The US Energy Secretary says "dozens to hundreds" of sanctioned shadow fleet tankers could be turned into legitimate ships, as hiring a single supertanker still costs about $1.37 million a day

Chris Wright said Monday the US is converting sanctioned dark fleet tankers into legitimate tankers, per FirstSquawk and Newsquawk. He also said talks with the UK on releasing diesel stocks are continuing

The relief would run case by case. Buyers or owners would apply to Treasury's OFAC, and officials say it would not let Russian or Iranian oil move, per Reuters

The goal is cheaper freight. A supertanker from the Middle East Gulf to China earned about $1.37 million a day last week on Baltic Exchange data, just off the record highs set since the Iran war began

Brent is still around $108 after settling Friday at its highest since May 19. Kpler says attacks cut Gulf crude flows to about 8.5 million barrels a day last week, and a tanker hit a mine in the Strait of Hormuz on Sunday

The catch is the fleet itself. Kpler tracks about 160 supertankers under US sanctions, roughly 22% of the commercial fleet. 46 are more than 20 years old, and only about 24 could realistically rejoin global trade once Iran's state tanker company is excluded

Many lack class certificates and credible insurance, and licenses to sell a sanctioned ship can take months or even years

Freight futures already tumbled on the first reports last week, and the WTI discount to Brent narrowed to about $10.42 from $14.17, its widest in over five months

This looks like a policy that moves freight futures faster than it moves ships. Two dozen old tankers won't fix a choke point, so real relief for oil and inflation still runs through Hormuz, not Treasury paperwork. The WTI to Brent spread is the cleanest place to watch whether it's working

Source: StockMarket.News