Oil traders seek US licenses to use sanctioned tankers

Trafigura, Vitol, Mercuria and Abu Dhabi National Oil Co.

are seeking US licenses for sanctioned tankers.

The talks cover about 50 vessels and come as the Iran war has disrupted shipping, lengthened routes and raised insurance costs.

Hiring a supertanker from the US Gulf Coast to China cost nearly $80 million in October, about ten times the pre-conflict average.

Asian orders for US crude fell roughly 50% in October, potentially bringing shipments to their lowest level in seven years.

The US Treasury is considering requests case by case, but no decisions have been finalized.

Bringing idled tankers back into service could add shipping capacity, though many need repairs, inspections and insurance, and US approval would not remove EU or UK restrictions.

The effect will depend on which vessels are approved and whether they can return to conventional commercial use.