Amid preparations for potential disruptions in the Red Sea shipping routes, the international oil market is witnessing a surge in freight rates as more and more industry players opt to lease tankers to navigate away from the troubled region.

Following airstrikes by the US-UK coalition in Yemen on the 12th, the situation in the Red Sea has become more chaotic. The Houthi rebels have threatened to retaliate against commercial vessels from both nations.

Western countries are issuing warnings for ships to steer clear, prompting numerous ship owners to divert from the waterway that typically handles around 12% of global maritime trade. As a result, an increasing number of fuel-carrying tankers are rerouting towards Asia, causing a sharp spike in freight costs.