ETFs See Surge in Profits Amid Iran Conflict Impact

On September 10, seven vessels passed through the Strait of Hormuz. Before the conflict, around 125 ships passed daily. Four lesser-known funds have turned the collapse into profit by 2026.

Only four U.S.-listed shipping ETFs exist, with total assets under management below $450 million—a negligible figure on Wall Street.

Four ETFs, four very different wars: Yahoo Finance reports that Breakwave Tanker Shipping ETF (BWET) has surged over 3,200% this year. It traded near $781.92 on Monday, with a 52-week low of $13.58. Since the war began, BWET has risen 1,300%.

While only BWET saw explosive growth, all four funds are profitable. Breakwave Dry Bulk (BDRY) rose about 95% over the past year. SonicShares Global Shipping (BOAT) gained 69%, and US Global Sea to Sky Cargo (SEA) increased 45%.

Unlike BWET and BDRY, which hold shipping futures contracts that lock in transport costs weeks ahead, BOAT and SEA invest in shipping company stocks like Frontline and Maersk. Actual carriers are heavily indebted and slow-moving, reflecting only long-term gains rather than rapid spikes.

Iran and the U.S. have been clashing since February 28. Ships halted operations as insurance costs became unaffordable. Saudi Arabia closed its last alternative route through the Bab el-Mandeb Strait, while Oman delayed new negotiations. Brent crude oil prices surpassed $100 on Monday, hitting $110—a 3% rise.

The Baltic Exchange reported a record daily rate of $862,150 for Gulf-China super tanker freight on September 10.

Ultimately, the burden falls on drivers. Non-crypto news outlet reports U.S. diesel prices have surpassed $6 per gallon in 28 states, hitting all-time highs.