FRO
Frontline Plc
stock NYSE

Frontline $FRO, DHT Holdings $DHT, Okeanis Eco Tanker $ECO, International Seaways $INSW
A Strait of Hormuz closure drives tanker dayrates higher due to increased war-risk premiums, longer rerouting costs, reduced vessel availability from operators avoiding the Gulf, speculative market volatility that can be captured by time-charter agreements, and limited pipeline alternatives, creating a supply crunch and spiking freight rates.

!banbet FRO +10% 8d

This is an ongoing story so details may be updated later but as of the time of writing, we know that two vessels have collided, one of which is a Frontline ($FRO) owned Very Large Crude Carrier (VLCC) that appears from for photos to be completely engulfed in flames, for the uninitiated, VLCCs can carry upwards of 2.000.000 barrels of crude, so having them catch fire is... Bad.
The reason for the collision has been confirmed to be a jamming of vessel navigation systems, still unconfirmed by whom but the result is that vessels currently navigate with a margin of error on their GPS systems of 100 nautical miles, effectly making them useless in the extremely crowded waters around the Strait Of Hormuz with an estimated 900 vessels currently located there.
What does this mean in practice? It has greatly exaggerated the risk of navigating the area and more importantly, it's a risk a US navy presence can't protect against. In practice, this will increase the insurance premiums demanded by vessel insurers.
This is relevant because if we look to the Suez, it was never officially closed by anyone, effectively however, it was shut by the insurers as the insurance premiums demanded for vessels wanting to transition was so high it made it uneconomical to use the Suez.
My thesis remains that a real treat exists twords the reliability of Strait Of Hormuz and the implications of a closure is currently not priced into markets whatsoever. The likelihood isn't high but investors, especially those in energy equities, should be aware of the risks and allocate accordingly.