Iran conflict hits global energy traders: Vitol, Trafigura, Mercuria struggle

Major global energy traders Vitol, Trafigura, and Mercuria are facing serious challenges due to the conflict surrounding Iran, struggling to capitalise on market volatility, the Financial Times reports.

The hostilities, which began on February 28, included attacks on tankers and oil infrastructure, as well as ship blockades in the Persian Gulf, creating significant uncertainty over Strait of Hormuz supplies.

Vitol has over 10 vessels blocked, with two destroyed and crew casualties reported. Insurance costs for shipping in the region have surged more than sixfold.

Traders have had to secure additional financing, with Vitol and Trafigura allocating $3 billion each and Gunvor $1.5 billion.

Experts note that continued high volatility could boost profits, potentially making 2026 a favourable year for the sector.