US-to-Asia Oil Shipping Hits Record $29 Million as Tanker Rates Explode
It’s never been more expensive to ship crude from the US to Asia, though some deals are starting to fall through already with rates sky-high.
A Russian vessel arrives at the Simon's Town Naval base ahead of the BRICS Plus countries which include China, Russia and Iran for a joint naval exercises in South Africa's, in Cape Town, South Africa, January 9, 2026. REUTERS/Esa Alexander
By Rene Vollgraaff (Bloomberg) — The US criticized South Africa for allowing Iran to participate in naval drills off the coast of Cape Town, after conflicting reports about the Islamic Republic’s involvement in the exercises.
Iran’s “inclusion in joint exercises – in any capacity – undermines maritime security and regional stability,” the US Embassy said in a post on X Thursday night. “South Africa can’t lecture the world on justice while cozying up to Iran.”
Warships from some members of the BRICS group of developing nations, including Iran, Russia and China, arrived in South African waters last week for a naval exercise that continued until Friday.
The statement is the latest US criticism of South Africa, whose relations with its second-biggest trading partner have been strained since President Donald Trump returned to the White House last year. Pretoria’s ties to Iran are among the issues that have elicited anger in Washington.
Trump has threatened to attack Iran over a violent crackdown against protesters, and this week said the US will impose a 25% tariff on goods from countries “doing business” with the Islamic Republic.
South Africa is “following the developments in Iran with concern,” the presidency said in a statement on Thursday, calling on authorities in Tehran “to ensure that citizens exercise their right to protest in peace.”
While local news outlet News24 reported that Pretoria had persuaded Iran to withdraw from the war games, pictures on the South African National Defence Force’s Facebook page showed captains of participating vessels docked in the South African naval base in Simon’s Town, with Iranian officials present.
“The United States notes with concern and alarm reports that the Minister of Defense and SANDF defied a government order regarding Iran’s participation in the ongoing naval exercises,” the statement said.
South African Defense Minister Angie Motshekga said President Cyril Ramaphosa had issued clear instructions on how the drills should be conducted — which dealt with Iran’s participation in particular — and they had been clearly communicated.
A board of inquiry has been appointed to determine whether those instructions had been miscommunicated or ignored, and it had been instructed to report back within seven days, the defense ministry said in a statement on Friday.
This is the second time South Africa’s defense force has drawn scrutiny over Iran.
Last year, Army Chief Rudzani Maphwanya was reported to have said the two nations shared common goals and called for deeper ties with Tehran during a visit, prompting the defense department to describe the remarks as unfortunate and the foreign affairs ministry to say they did not reflect official policy. Ramaphosa’s spokesman later said the president was unaware of the trip and had not approved it.
© 2026 Bloomberg L.P.
This article contains reporting from Bloomberg, published under license.
Sign up for gCaptain’s newsletter and never miss an update
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up