The Breakwave Tanker Shipping ETF (BWET) has soared over 600% since early 2024, driven by sharp increases in crude oil tanker freight rates amid geopolitical tensions in the Strait of Hormuz. This surge outpaces traditional energy trades like crude oil, reflecting investor interest in energy infrastructure and shipping costs rather than just oil prices. The conflict and disruptions in key maritime routes have caused freight futures to spike, highlighting the critical role of shipping in global energy markets. Experts warn that while BWET's gains are impressive, freight rates remain volatile and influenced by short-term geopolitical shocks, but the trend signals a shift toward investing in the systems that move energy commodities.
