Oil supertanker rates have surged to record highs as conflict in the Middle East disrupts shipping through the Strait of Hormuz. The Baltic Exchange reports that earnings on the industry's benchmark route from the Middle East to China climbed to $424,000 per day, the highest level ever recorded for very large crude carriers (VLCCs).

This spike in freight costs comes alongside a jump in oil prices and represents one of the most tangible market responses to the ongoing conflict. The vital Strait of Hormuz, which handles about a fifth of the world's oil and similar proportions of liquefied natural gas, has all-but closed to tanker traffic. South Korean firm Sinokor was reportedly asking for charter rates equivalent to about $20 per barrel to transport crude from the Middle East to China.

Shipbrokers indicate that the going rate for VLCCs on the benchmark route has increased to 700 Worldscale points, more than triple Friday's levels. The Baltic Exchange is consulting with industry panelists about how to respond to the current situation. With no willing buyers or sellers at these elevated levels, the market is essentially frozen as traders wait to see what happens next at the crucial waterway.