During the Iran war, the most reliable winners in the market were not extractors or refiners. Instead, it is the tanker companies that set the pace for the market, especially those that operate Very Large Crude Carriers (VLCCs).
VLCCs each haul about two million barrels of crude oil per voyage. And, before the conflict started, more than 100 of them would pass through the Strait of Hormuz on a typical day. But these are no ordinary days.
The daily updates surrounding the war in Iran are enough to give even the most hardened investor a headache. If you haven’t been following the news closely, sit down, grab a glass of water (and maybe some Dramamine), and dive into the latest news:
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July 8: President Trump cancels the ceasefire as the United States attacks 80 Iranian defense targets in response to attacks on commercial vessels.
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July 9: Iran says it is attacking US bases in Bahrain, Kuwait and Qatar.
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July 11: Iran says the Strait of Hormuz is permanently closed.
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July 12: The United States attacks another 140 Iranians.
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July 13: President Trump renews the US embargo and proposes a 20% fee for the safe passage of tankers through Hormuz.
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July 14: Trump cancels plans to impose a 20% toll on Hormuz traffic.
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July 15: Trump looks to expand operations in Iran, including seizing Kharg Island.
Do you have all that? Great, there are 20 minutes of questions before it changes again.
For many companies in the energy sector, constant uncertainty is a recipe for inefficiency. But rampant disruption is actually beneficial to tanker companies who can charge higher prices when routes and timings are uncertain. Prices are measured in ton-miles, which is freight multiplied by distance. Long journeys increase the amount of money paid by the tanks of the charge, which is more than a large amount of war. Rates have not yet risen to March levels, but they are still up and back to accelerating.
VLCCs can have breakevens as low as $15,000 per day, so higher prices for extended periods are a big boost to the shipping company’s stock, even if the net price is much lower. Many Gulf vessels have also been diverted to the area around the Cape of Good Hope, causing prices to increase by 30% to 50% to reduce long journeys. And many of these companies are successfully using higher prices to increase their bottom lines.
As tanker trading has returned strongly, investors may want to consider these two stocks, each with high-quality vessels and a potential catalyst.
Frontline: The Largest Fleet With Multiple Trade Routes
Frontline Today
- 52 week interval
- $18.06
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$43.10
- Dividend Yield
- 16.97%
- The P/E ratio
- 9.00
- Target Value
- $41.62
The company operates trade routes across the Middle East, Asia, America, and Europe, and this strategic positioning makes it highly sensitive to market fluctuations.
This was reflected in the company’s Q1 2026 financial report, released in late May, which showed revenue up 67% year-on-year (YOY).
More than 80% of its VLCC dates were booked for Q2 at the time of release, and the Q2 report is scheduled for Aug. 31.
Support at the 50-day moving average has been strong for FRO shares throughout this dispute, although the stock remains stuck at the same level it was at in March. But the 50-day is still up, and the Relative Strength Index (RSI) suggests that momentum is rising.
DHT Holdings: A Strong Combination with a Healthy Balance Sheet
DHT Today
- 52 week interval
- $10.61
▼
$20.55
- Dividend Yield
- 14.69%
- The P/E ratio
- 8.46
- Target Value
- $19.33
Not only are VLCCs owned by Company DHT Holdings Inc. NYSE: DHT they have the lowest break-even in the industry at around $15,000 per day, but the company itself is almost debt-free (unusual for a shipper) and pays a solid dividend.
Using a combination of spot and time charters, DHT transports barrels of crude oil from the Gulf to refiners in Asia, North America and Europe.
Despite having more than 50 VLCCs docked in the Strait of Hormuz in fiscal Q1 2026, the company still reported YOY revenue growth of nearly 135%.
One point of contention: the dividend looks risky at 14.75% with a payout ratio of 124%.
Like many of its VLCC peers, DHT shares are stuck in neutral, trading in a tight range after entering a war formation. The stock has recently dropped to the lower end of this trading range, and signals on the RSI and the Moving Average Convergence Divergence (MACD) indicator indicate bullish momentum is accelerating again.
The company’s next earnings release is for Q2 2026 financial results on Aug. 5, and investors will be eagerly awaiting an update on the status of the VLCC fleet.
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