Analysis
Baltic Exchange defends tanker rate benchmark amid Iran conflict dispute
The Baltic Exchange defended its flagship oil tanker benchmark in a London court filing, asserting it accurately reflected market conditions during the U.S.-Israeli conflict with Iran despite Strait of Hormuz disruption. Commodity trader Mercuria sued over losses estimated in the hundreds of millions of U.S. dollars on freight and derivative contracts linked to the TD3C route, claiming the benchmark mispriced the market after the conflict began on February 28. The Exchange maintains its indices remain reliable and that lawful passage continued through the strait.
