Freight Rates Surge and Insurance Hits 20% as Hormuz Crisis Disrupts Global Oil Market

The blockade of the Strait of Hormuz has caused a critical imbalance in oil market pricing, according to energy sovereignty and industrial markets analyst Freddy Gustavo Velasquez Robles. Global Energy Security Structure Faces Collapse Velasquez Robles said the conflict in the Middle East signals the definitive failure of the existing global energy security architecture. In his view, the situation will force a reassessment of supply structures in the context of regional strategic survival, RIA Novosti reports. Freight tariffs have become hyper-volatile. Due to navigation risks in the Strait of Hormuz, tankers now reroute around Africa via the Cape of Good Hope, extending transit times by 10 to 15 days and significantly increasing costs.