Hormuz 'Death Route' Turns Into Lucrative Business: Swiss Trader Takes Risk to Ship Oil, One Vessel Nets $60 Million Gross Profit

May 25: Amid near-blockade conditions in the Strait of Hormuz, a supertanker carrying roughly 2 million barrels of Iraqi crude oil successfully navigated the restricted waterway, drawing global attention to the oil market. Swiss trading firm Lytton SA is also in the spotlight, reportedly pocketing about $60 million in gross profit from the single transaction. The vessel, named the Agios Fanourios II, was originally bound for Vietnam. It was intercepted multiple times by Iranian and U.S. forces along its route, requiring several rounds of diplomatic coordination. Ultimately, Vietnam’s state-owned oil company, PetroVietnam Oil Corp, stepped in to secure the safe delivery of the cargo. Heightened tensions in the Strait of Hormuz have driven Iraqi crude oil to steep discounts within the Gulf region. Sources indicate Lytton SA purchased the oil at a price roughly $18 per barrel below the international benchmark, then sold it at a significant premium outside the Gulf—creating an enormous arbitrage opportunity. For all the high profits, the deal carried significant risks. Total shipping costs for the single voyage ranged from $35 million to $40 million. At one point, the tanker was instructed to sail to Iran’s Bandar Abbas port, and was seized by U.S. military forces after exiting the strait for inspection. The U.S. authorities released the vessel only after confirming the cargo was not Iranian oil. With sharp swings in oil prices and ongoing unrest in the Middle East, the global oil trading market is seeing a rare period of outsized profits. Price gaps in some crude oil trades have widened to $20 to $30 per barrel, with single-vessel profits reaching tens of millions of dollars. This is drawing more traders and shipowners to "take the risk" of navigating the Strait of Hormuz.