Goldman Sachs: Oil Freight Rates Surge Sevenfold to Over $20 a Barrel

The escalating war in the Middle East has driven crude shipping costs up sevenfold, according to Bloomberg and BusinessLine.

Oil shipping costs have surged sevenfold to over $20 a barrel amid the ongoing war and security tensions in the Middle East, Bloomberg and BusinessLine reported.

According to Bloomberg, investment bank Goldman Sachs stated that the military conflict in the region spurred the dramatic jump in tanker freight rates. The sharp rise in transport costs significantly increases the expense of crude deliveries and weighs on international markets.

Further details regarding the extent of disruptions along maritime shipping routes have not yet been released.