VLCC (Very Large Crude Carrie) Carrying Iraqi Oil Crosses Strait of Hormuz After Delays
A supertanker carrying nearly 2 million barrels of Iraqi crude oil completed a high-risk voyage through the Strait of Hormuz after facing delays, inspections, and mounting regional tensions tied to the Iran conflict. The vessel, Agios Fanourios II, was transporting oil from Iraq to Vietnam, with traders and shipping companies closely watching the journey as a signal of whether tanker traffic through the strait was starting to recover.
The cargo was reportedly arranged by Geneva-based trading firm Lytton SA, a low-profile company founded in 2024 by former Trafigura oil trader Hakim Darbouche and former Onex Dubai executive Alan Konyar. According to the report, the company bought Iraqi crude at discounts as deep as $18 per barrel below international benchmark prices at Basra port, creating a potential gross profit of about $60 million on a single shipment. Iraqi state oil sellers reportedly offered discounts of up to $33.4 per barrel during the month as regional instability disrupted commodity markets
The voyage became a closely watched test case for commercial shipping in the Strait of Hormuz, one of the world's most important oil transit routes. During the trip, the tanker was reportedly stopped by both Iranian and US authorities. The report said the US military suspected the vessel might be carrying Iranian crude oil. Vietnam's national oil company then contacted the US Naval Forces Central Command, arguing the cargo was critical for domestic fuel supply. After a five-day inspection process, the tanker was eventually cleared to continue.
The shipment also highlighted the growing risks and rewards facing oil traders during the current market disruption. Trading spreads in the oil market reportedly expanded to $20 to $30 per barrel, far above normal margins of only a few cents. Industry sources said a single VLCC cargo could now generate profits between $40 million and $60 million. However, shipping costs for the Agios Fanourios II voyage alone were estimated at $35 million to $40 million because of insurance, security, and operational risks tied to the route.
The report said tanker operators navigating the Strait of Hormuz now face both maritime security threats and sanctions exposure. Iran has reportedly sought transit-related payments from passing vessels, while the US Treasury has warned that paying such fees could violate US sanctions rules and expose foreign firms to penalties. Lytton SA and the vessel's management company, Eastern Mediterranean Maritime, said no transit fees were paid to Iran during this voyage.
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