The Breakwave Tanker Shipping ETF (ticker: BWET) is surging in Monday's trading, becoming the world's top-performing non-leveraged ETF this year. The fund has posted year-to-date returns nearing 200% as rising oil-shipping costs amid the conflict in Iran drive investor interest. The ETF's explosive performance has caught the attention of market analysts tracking the volatile energy shipping sector.

Tanker shipping rates have spiked as tensions in the Middle East disrupt global oil flows. The conflict in Iran has created supply chain uncertainties that benefit tanker operators, pushing shipping costs higher. This geopolitical turmoil has transformed BWET into a standout performer in an otherwise challenging market environment for many other exchange-traded funds.

On Bloomberg's "ETF IQ" program, Katie Greifeld and Eric Balchunas discussed the remarkable rally. The ETF's performance highlights how geopolitical events can create outsized opportunities in niche market segments. Investors are now watching whether the tanker shipping boom can sustain its momentum as the situation in Iran continues to evolve.