Daily auction prices for the busiest Panama Canal lanes have surged to record highs, averaging $837,500 for Panamax locks as the Iran war disrupts global shipping routes. The waterway has seen five times more bids than pre-conflict levels, with some auctions reaching $4 million for priority access. This unprecedented demand reflects Asian buyers scrambling to secure oil and gas shipments.

About 70 percent of vessels transiting the Panama Canal use the original Panamax locks, where auction prices have jumped nearly tenfold since the conflict began. The Strait of Hormuz closure has decimated Gulf production and throttled Asian supply, forcing companies to pay premium rates to bypass growing queues. Wait times for crude tankers have reached 4.25 days, a six-week high, according to Kpler data.

The surge in US oil and fuel shipments through the canal has created intense competition for limited slots. While big vessel owners typically pre-book at lower rates, up to 30 percent of traffic now competes in daily auctions. Experts attribute the increased traffic to plentiful US supply amid the Strait disruption. The competition between Europe and Asia for crude and refined products has intensified, with 29 tankers carrying diesel, LNG, and jet fuel diverting to Asian markets since late February.