Wet freight market report: Israel and Iran war

The recent escalation in the Israel-Iran conflict has dominated the global freight market headlines, overshadowing fundamental market drivers such as product arbitrage margins and crude landed values. This week, we’ll focus on the freight market impacts and potential scenarios arising from this conflict. Later today we’ll game out further scenarios and freight market impacts on the Sparta podcast.

The decision by Israel to attack Iran now is driven by many moving parts and strategic decisions. A crucial move setting up these strikes was Israel’s neutralization of Syria’s air defense systems months ago, allowing Israeli jets to now reach Iran and then refuel in Syrian airspace unfettered. This development has significantly altered the regional dynamics, enabling Israel to target Iran effectively and continuously. Israel’s actions have also disrupted Iran’s supply chain to Hezbollah in Lebanon, compromising the group’s capabilities to threaten Israel.

Michael Ryan, our Freight Commodity Owner at Sparta, brings over a decade of experience with Trafigura in the energy sector managing risk across products and regions before becoming Head of Risk for subsidiary Puma Energy. Michael then joined the Trafigura commercial team trading freight while successfully growing the physical fleet through strategic dealmaking.

Sparta is a live, market intelligence and forecasting platform that enables oil traders, refiners, banks, hedge funds and wholesalers to have access to real-time and global actionable insights to capture market opportunities before others.

To find out how Sparta can allow you to make smarter trading decisions, faster, contact us for a demonstration at sales@spartacommodites.com