Oil Traders Want U.S. to Release Sanctioned Tankers as Freight Costs Soar

Some of the world's biggest oil traders are asking Washington for permission to put sanctioned tankers back to work, as a global vessel shortage pushes oil transportation costs to extraordinary levels. Trafigura, Vitol, Mercuria and Abu Dhabi National Oil Co. S. officials for licenses to purchase or lease blacklisted oil tankers, Bloomberg reported Friday, citing people familiar with the discussions.

S. sanctions. Treasury officials are considering approvals on a case-by-case basis, although no decisions have been finalized. The proposal comes after months of shipping disruptions stemming from the Iran war, which has forced tankers onto longer routes, increased insurance costs, and tied up vessels in inefficient transfers around the Strait of Hormuz. S.