Why Scorpio Tankers Stock Dropped Today

Scorpio Tankers’ shares fell about 2.6% through 10 a.m. ET, reversing some of an earlier rally that had gained as much as 11% in the first two weeks of September. The stock had risen as tanker charter rates increased: the cost to charter a Very Large Crude Carrier (VLCC) passed $1 million per day, up fivefold from levels before the Feb. 28 Iran war began. The Baltic Dirty Tanker Index (BAID) showed the shift, rising from just under 2,000 before the war to 2,421 at the start of September and then to 5,092 this month. Scorpio’s drop followed Reuters reporting that Iran offered to reopen the Strait of Hormuz within seven days if the U.S. lifts its blockade on Iranian shipping.