Licking blood from the blade! A mysterious Swiss oil trader braves the Strait of Hormuz, arbitraging a massive $60 million profit

Middle Eastern conflicts have triggered turmoil in the oil market, creating astonishing profits for traders willing to take risks. According to Bloomberg, during the highly watched transit event of the oil tanker "Agios Fanourios I" earlier this month, Swiss trading firm Lytton SA was behind the operation of transporting Iraqi crude oil from the Persian Gulf through the Strait of Hormuz to Vietnam. The company bought the oil at Iraq's Basra port with a discount of $18 per barrel below benchmark, and combined with the premium outside the Persian Gulf, the gross profit of this trade is estimated to be about $60 million. Although the gross profit figure is sizeable, the actual net profit is far less. Reports citing insiders say that since the outbreak of war, freight costs have surged, and the transport cost of the "Agios Fanourios I" is about $35 million to $40 million. In addition, demurrage charges—daily delay fees charged by the shipping company due to multiple forced halts—are rapidly eroding trading profits. As the ship management company, Eastern Mediterranean, states it cannot "confirm" the financial data related to this batch of cargo. This case is yet another snapshot of traders profiting amid historic commodity market turmoil caused by the Iran war. Currently, top global oil traders are recording record earnings, with profits as high as $20-$30 per barrel—whereas under normal market conditions, profits are just a few cents per barrel. Key Intermediary: Lytton SA's Role Reports citing insiders indicate that the real operator behind this "crude oil breakthrough" across the Strait of Hormuz is not the final buyer, but a newly emerged trading firm—Lytton SA, established only two years ago. This Geneva-based firm was founded in 2024 by former Trafigura oil trader Hakim Darbouche and former Onex DMCC executive Alan Konyar. Despite its short history, it has made a name for itself by agency sales of oil products from the Iraqi Kurdistan Taurus refinery and is active in the crude oil, refined oil products, and naphtha trade in the Mediterranean and East Asia. Insiders say that this supertanker "Agios Fanourios I," loaded with nearly 2 million barrels of Iraqi crude oil and heading for Vietnam, has PetroVietnam Oil Corp, a subsidiary of Vietnam National Oil and Gas Group, as the final buyer. However, the actual operator responsible for cargo transit coordination and subsequent transport arrangements is Lytton. Over the past few weeks, the fate of this tanker has held the nerves of the global energy market. Since this month, traders have been tracking satellite data, hoping to find signs of normalized shipping through the Strait of Hormuz. Three Obstacles, Diplomatic Maneuvering Resolves Crisis The passage of "Agios Fanourios I" was eventful. Reports quoting insiders say that the tanker initially received passage permission from Iran only after direct coordination by the Iraqi government. However, during its attempts to cross the Strait of Hormuz, the vessel was twice ordered by Iran to turn back. The Iraqi government had to launch a new round of intense diplomatic negotiations to secure another opportunity for passage. On the third attempt, the situation escalated further. Iran even asked the tanker to sail to its main port Bandar Abbas. In response, the ship management company Eastern Mediterranean Maritime issued a statement stressing that the vessel has never docked at any Iranian port nor been boarded for inspection by Iranian authorities. It was only on the evening of May 10 that the supertanker successfully exited the Strait of Hormuz. But new trouble soon emerged. The U.S. Navy subsequently intercepted the vessel, suspecting it might be carrying Iranian crude oil. Facing this emergency, buyer PetroVietnam Oil urgently wrote to the U.S. Navy's Central Command, stating that the supply of this crude was "vital" to Vietnam and requested expedited release. After a five-day wait and U.S. inspection, "Agios Fanourios I" was finally permitted to continue its voyage. Eastern Mediterranean Maritime stated that it has always clearly informed relevant authorities that the ship is carrying Iraqi crude oil—not Iranian—but has yet to be told the specific reasons for the American interception. High-Risk Gamble: Sanctions and Commercial Temptation in Hormuz Whether this event could serve as a model for other tankers remains to be seen. However, according to Bloomberg, Vitol Group, one of the world's largest energy traders, has recently completed a ship-to-ship Iraqi crude transfer outside the Persian Gulf, suggesting its tanker may have also successfully passed through the Strait of Hormuz. Over the past week, shipping volume through the strait has picked up, indicating some ship owners and traders are reassessing risks. Yet risks persist—not only in terms of safety, but also concerning sanctions. Iran requires passing vessels to pay transit fees, but the specifics of enforcement are unclear; while the U.S. Treasury has warned that paying Iran could violate sanctions, and foreign companies risk American penalties if payment is made. On one hand lies the commercial interest of entering the world's most important oil export channel; on the other is the potential cost of crossing the sanctions red line. Shipowners, traders, and refiners shuttling to and from the Persian Gulf still have to weigh their options between these two dilemmas. Risk Warning and Disclaimer The market involves risks; investments should be made with caution. 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