U.S.-Iran War Drives Surge in Tanker Shipping ETF Amid Oil Supply Shifts

The U.S.-Iran war has disrupted global energy markets, causing freight rates for oil tankers to skyrocket and prompting investors to turn to related financial instruments. The Breakwave Tanker Shipping ETF, ticker BWET, has surged more than 600% since the start of the year, outperforming crude oil prices which rose around 60% in the same period.

Rising tensions in the Strait of Hormuz and disruptions to key maritime corridors have driven this increase in shipping costs.

Investors are pivoting toward energy infrastructure plays amid geopolitical volatility, rather than direct bets on oil prices. The ETF, with about $30 million in assets, tracks crude oil tanker freight rates, which have spiked due to the conflict. Wall Street research teams have noted gains in tanker stocks as a result.

“It really is a story about shipping costs. Anytime you have some big disruption to shipping ... freight futures skyrocket and there's one ETF that captures pretty much that performance better than anybody else." — Cinthia Murphy, VettaFi director of research (CNBC). The rally highlights underinvestment in energy infrastructure and the need for more resilient supply chains worldwide. Countries and companies are scrambling to find stable energy sources amid the conflict.”

Japan received its first shipment of U.S. crude oil since the war began, as the government seeks to increase procurement from non-Middle Eastern suppliers. This move reflects broader efforts to diversify oil imports amid disruptions in the region. The Baltic Exchange Dry Index rose over 6% in the past week and 41% year-to-date, indicating wider shipping cost increases beyond oil.

The war has raised lingering questions about the U.S. authorization of a strike that killed Iran's supreme leader. The action has been described as unprecedented for a U.S. president, potentially normalizing assassinations of foreign leaders.

“We know exactly where the so-called ‘Supreme Leader’ is hiding. He is an easy target but is safe there—We are not going to take him out (kill!), at least not for now." — President Donald Trump, on Truth Social (Washington Monthly). Historical precedents include accusations of U.S. involvement in plots against foreign leaders, though often without direct presidential knowledge. The strike occurred in February during the war's outset, contributing to ongoing tensions.”

Discussions around the conflict have drawn parallels to historical instances of collective delusion or overreach, such as witch hunts or show trials. Some commentary suggests that fervent pursuits of perceived threats can echo past manias, though direct ties to the war remain interpretive. The conflict continues without a resolution in sight, affecting global trade and energy security.