Hormuz "Death Route" turns into a highly profitable business: Swiss traders risk transporting oil, earning $60 million in gross profit per ship.

Mars Finance News: On May 25, amid a near-shutdown in navigation through the Strait of Hormuz, a supertanker loaded with approximately 2 million barrels of Iraqi crude oil successfully forced its way through the blockade, drawing global attention to the oil market. Behind the scenes, the Swiss trading company Lytton SA was also the subject of heated discussion in the market after scoring about $60 million in gross profit from a single transaction.

Reports say the tanker, named “Agios Fanourios II,” was originally scheduled to ship crude oil to Vietnam. During the voyage, it was intercepted multiple times by Iran and the U.S., and went through several rounds of diplomatic coordination. Ultimately, it completed the shipment successfully after intervention by the Vietnam national oil company Petro Vietnam Oil Corp.

Due to the tense situation in the Strait of Hormuz, Iraqi crude oil traded at a massive discount within the Gulf. Sources say Lytton SA purchased the crude at a price $18 per barrel below the international benchmark, and then sold it outside the Gulf at a high premium, creating a staggering arbitrage opportunity.

However, behind the high profits also comes high risk. The sea freight cost for this single shipment alone was as high as $35 million to $40 million. The vessel was also reportedly required to sail to Iran’s Abadan port, and after leaving the strait, it was intercepted by the U.S. military and investigated. In the end, the U.S. cleared it after confirming that the cargo was not Iranian oil.

With oil prices swinging sharply and tensions in the Middle East continuing, the global oil trading market is seeing a rare window of extraordinary profits. The report says that some crude oil transactions have seen price differentials widen to $20 to $30 per barrel; profits per vessel can reach tens of millions of dollars, attracting more and more traders and shipowners to “take risks” and try to push through the Strait of Hormuz.