Closure of the Suez Canal from 1967 to 1975 forced oil shipments bound for Europe around Africa, increasing voyage lengths and transport costs. Larger tankers offered a way to spread those costs across more cargo, encouraging very large crude carriers of about 250,000 deadweight tons. The 1973 oil crisis then raised oil prices sharply and contributed to inflation and recession. Further disruption followed the Iranian Revolution and attacks on tankers and energy installations during the Iran-Iraq War. Higher insurance costs added to the burden on shipping. Diversification beyond OPEC suppliers and increased liquefied-natural-gas shipments reduced dependence on a single source of oil.
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Suez, oil shocks, and the economics of tanker routes
Longer routes encouraged larger tankers, while oil shocks and attacks on shipping spread maritime disruption through the wider economy.