Hormuz shipping costs lower than feared, easing oil price pressures amid Iran war disruptions

The Iran war has disrupted oil production and shipping through the Strait of Hormuz, pushing energy prices higher globally. However, TotalEnergies CEO Patrick Pouyanne revealed that moving a supertanker through Hormuz costs about $20 million round trip, or roughly $10 per barrel, much less than feared. Iraq is offering discounts on Basrah crude that offset this premium, making shipping economics more manageable. TotalEnergies benefits from this environment with strong trading profits, cash flow, and share buybacks, positioning it well if Hormuz shipping stabilizes despite ongoing risks from the conflict.