International Seaways Inc

International Seaways reported record second-quarter 2026 results, including adjusted net income of $295 million, or $5.91 per share, and declared its largest quarterly dividend of $5.05 per share. Adjusted EBITDA reached $345 million and free cash flow hit a record $261 million, while blended spot TCE rates were $79,000 per day, up from $27,500 a year earlier. The company also ordered four additional LR1 newbuildings for delivery in the second half of 2028, bringing its total LR1 order series to ten vessels, and noted that the Strait of Hormuz conflict has created one of the most significant disruptions to seaborne transportation in decades. Management highlighted nearly $1 billion in liquidity, net loan-to-value of about 6%, and a fleet-wide spot cash breakeven below $14,500 per day, with about 48% of third-quarter revenue days booked at a blended spot TCE of approximately $61,000 per day.

The Strait of Hormuz remains a live flashpoint for global oil markets, keeping risk premiums embedded in tanker rates and crude logistics. Scorpio Tankers reported its strongest quarter in company history with adjusted EBITDA above $300 million and product tanker rates above $30,000 per day, while International Seaways posted record Q2 2026 free cash flow and net income of $295 million, or $5.91 per diluted share, with average spot earnings of roughly $51,500 per day. Delek Logistics Partners reaffirmed full-year 2026 adjusted EBITDA guidance of $520 million to $560 million, citing higher crude prices tied to Middle East conflict as a demand driver. Iran said its shipping agreement with Oman is nearing completion but warned the corridor will not fully reopen until the U.S. meets broader demands including sanctions relief and compensation. Energy has been the top-performing S&P 500 sector in 2026, gaining more than 30% year-to-date, though FactSet projects 2027 sector-wide earnings growth to turn negative as geopolitical tensions ease.

President Trump declared the U.S. would act as the 'Guardian of the Hormuz Strait' and charge a 20% fee on all transiting cargo to cover security costs, prompting the International Maritime Organization to state there is no legal basis for mandatory tolls to transit a strait. The announcement follows escalating clashes in which Iran has targeted commercial vessels and vowed to impose its own fees for passage, while the U.S. has conducted airstrikes against Iranian installations. The IMO, the U.N. body overseeing global shipping safety, clarified that freedom of navigation is guaranteed under customary international law, which the U.S. has historically recognized. The proposed fee marks a shift toward transactional foreign policy, raising concerns that allies may seek alternative security arrangements and that other powers could assert similar claims in contested waterways.