Hormuz 'Death Route' Turns Into Lucrative Business: Swiss Trader Takes Risk to Ship Oil, One Vessel Nets $60 Million Gross Profit

BlockBeats News, May 25th: Against the backdrop of nearly a blockade in the Strait of Hormuz, a super tanker carrying about 2 million barrels of Iraqi crude oil successfully passed through the blockade, attracting global attention to the oil market. The Swiss trading company Lytton SA, behind the scenes, has also sparked market discussion as it pocketed approximately $60 million in gross profit from a single transaction.

Reports indicate that the oil tanker, named "Agios Fanourios II," was originally destined to transport crude oil to Vietnam. During its journey, it was intercepted multiple times by Iranian and U.S. forces and went through several rounds of diplomatic coordination. The final successful transport was achieved with the intervention of Vietnam's state-owned oil company, Petro Vietnam Oil Corp.

Due to the tense situation in the Strait of Hormuz, Iraqi crude oil was heavily discounted within the Gulf. Sources revealed that Lytton SA purchased the oil at a price $18 below the international benchmark price per barrel, and then sold it at a significant premium outside the Gulf, creating an astonishing arbitrage opportunity.

However, behind the high profits also lurked high risks. The single shipping cost for this transport amounted to $35 million to $40 million. The vessel was even instructed to sail to the port of Bandar Abbas in Iran and was intercepted by the U.S. military after exiting the strait for investigation. Ultimately, the U.S. authorities released the vessel after confirming that the cargo was not Iranian oil.

With the sharp fluctuations in oil prices and the ongoing tension in the Middle East, the global oil trading market is witnessing a rare window of extraordinary profits. Reports suggest that the price differentials in some crude oil trades have widened to $20 to $30 per barrel, with single-vessel profits reaching tens of millions of dollars, attracting more and more traders and shipowners to "risk the passage" through the Strait of Hormuz.