Oil supertanker costs in the Middle East climbed to their highest level on record as conflict between the U.S. and Iran disrupts shipping through the strategically vital Strait of Hormuz.

Major marine war risk providers have started to scrap cover for vessels operating in the Persian Gulf as the fallout from a sudden security shock hobbles key shipping routes in the region.

The benchmark freight rate for Very Large Crude Carriers (VLCCs) — used to ship 2 million barrels of oil from the Middle East to China — hit an all-time high of $423,736 per day on Monday, data from LSEG showed. That marked an increase of more than 94% from Friday’s close.

Alongside a significant jump in oil and gas prices, the stratospheric rise in the cost of hauling crude oil follows the U.S. and Israeli attacks on Iran over the weekend. The expanding conflict has resulted in the effective halt of shipping traffic through the Strait of Hormuz — one of the world’s most important oil choke points, located in the gulf between Oman and Iran.

An Iranian Revolutionary Guards senior official said Monday that the Strait of Hormuz had been closed and warned any vessel attempting to pass through the waterway would be attacked, state media reported. The claim has since been disputed by the U.S. military’s Central Command, CENTCOM, Fox News reported.

“Charterers in the VLCC segment stepped back from the market and avoided securing vessels as multiple incidents have led to increased threat levels around the strait of Hormuz, despite the waterway not being officially closed,” Sheel Bhattacharjee, head of freight pricing in Europe at Argus Media, told CNBC by email.

Oil producers in the Middle East have not yet announced a halt to any production or loading yet, and ports in the UAE, Oman and Kuwait remain operational, Bhattacharjee said, citing market sources.

“But most shipowners were avoiding transits through the strait of Hormuz after insurers cancelled the war risk coverage for vessels in certain areas of the region,” Bhattacharjee said.

It is estimated that roughly one-third of seaborne crude oil trade moves through the strategically important waterway, alongside 19% of global liquefied natural gas (LNG) flows and 14% of global refined products trade, according to Argus Media.

Leading maritime insurers have canceled war risk cover for vessels operating in the Middle East over recent days, amid reports of attacks on multiple ships traversing through the Strait of Hormuz.

Alongside the New York-based American Club, marine insurers including Norway’s Gard and Skuld, Britain’s NorthStandard and the London P&I Club said they were scrapping war risk cover for ships in the region.

Adrian Beciri, CEO of DUCAT Maritime, a Cyprus-based logistics firm specializing in dry bulk, said the knock-on effects of the sprawling Middle East conflict were being felt across the globe.

“We were trying to hire a dry bulk vessel to carry our typical rice food supplies to West Africa, which is around the Cape of Good Hope. You would think that is a million miles away from the conflict zone,” Beciri told CNBC’s “Squawk Box Europe” on Tuesday.

“We actually lost the ship. Someone had paid 50% more than they typically would do to carry coal from Indonesia to the west coast of India. Why did that vessel attract such a high rate? The answer is because the vessel owner was uncertain of getting cargo from the Persian Gulf area,” he continued.

“So, the consequences are far and wide, and this is potentially a double whammy. If we’re looking at the Hormuz closing and the Suez effectively being tampered with by the Houthis, this could be quite significant — much like what we saw during the Covid era and the attacks that were happening there.”

Even if oil tankers are only temporarily blocked from the Strait of Hormuz, it can ratchet up global energy prices, raise shipping costs and create significant supply delays.

The Strait of Hormuz is also key for global container trade. Ports in this region, such as Jebel Ali and Khor Fakkan, are specialized transshipment hubs that serve as intermediary points in global networks.

Shipping giants, including MSC, Maersk, Hapag-Lloyd and CMA CGM, have also issued fresh guidance, seeking to prioritize safety amid a deteriorating security situation.

Panama annulled key port contracts held by a subsidiary of Hong Kong-based CK Hutchison in its official gazette Monday, transferring interim operations of the ports to Danish shipping giants A.P. Moller-Maersk and Swiss-based Mediterranean Shipping Co.

The notice formalized a Supreme Court ruling last month that the concessions for the Balboa and Cristobal terminals near the Panama Canal, which Panama Port Company, a subsidiary of CK Hutchison, had held for more than two decades, were unconstitutional.

The Panamanian government on Monday formally assumed control of the port facilities, including cranes, vehicles, computer systems and software under a decree aimed at ensuring uninterrupted operations until a new concession is awarded within 18 months.

Under the interim arrangement, APM Terminals, a unit of Maersk, will operate the Balboa port on the Pacific side of the canal, while MSC’s port operating subsidiary, Terminal Investment, will run the Cristobal port on the Atlantic side.

Shares of CK Hutchison fell 0.9% at the open Tuesday. The stock has climbed over 20% so far this year.

CNBC reached out to CK Hutchison, Panama Ports Company, Maersk and MSC for comment but did not receive a response by publication.

The simmering dispute has become a geopolitical flashpoint between Washington and Beijing, with Panama caught in the crossfire.

After U.S. President Donald Trump alleged last year that China was “running the Panama Canal,” CK Hutchison negotiated a $23 billion deal with a BlackRock-led consortium to sell its non-Chinese port assets. Beijing swiftly intervened, describing the sale as  “kowtowing” to American pressure and stalling the transaction.

The Hong Kong conglomerate has pushed back since the ruling last month and initiated arbitration proceedings against Panama. On Feb. 12, CK Hutchison said that “any steps” that Maersk or its subsidiary takes to operate the ports without its agreement will likely “result in legal recourse.”

Beijing also warned that the Central American country will “pay a heavy price both politically and economically” unless it changes course.

The Panama court’s ruling was seen as a major victory for the U.S., given that the White House has made blocking China’s influence over the global trade artery one of its top priorities.

China has reportedly directed state firms to halt talks over new projects in Panama and urged shipping companies to consider rerouting cargo through other ports, Bloomberg reported last week.

— CNBC’s Emily Chan contributed to this story.

The recent release by the Department of Justice of millions of pages of emails and other documents related to the notorious sex predator Jeffrey Epstein has led to a wave of resignations and other uncomfortable fallout for high-profile people around the world whose dealings with him have been exposed.

Those individuals include the top lawyer at the major investment bank Goldman Sachs, the CEO of Dubai’s largest port, a former president of Harvard University, a former U.S. president and ex-secretary of State, and the chairman of a leading American corporate law firm.

The fallout from the Epstein files and people mentioned in them has even imperiled the government of United Kingdom Prime Minister Keir Starmer, even though the Labour Party leader never knew the convicted sex offender.

Epstein, who cultivated relationships with many rich and powerful men and women, pleaded guilty in 2008 in Florida to state criminal charges related to soliciting prostitution, with one charge related to a girl under the age of 18.

He ended up serving 13 months in prison in that case, but was allowed to go to his office many days for work.

In August 2019, Epstein killed himself in a jail in New York City, weeks after being arrested on federal child sex trafficking charges.

A number of the people who have resigned their jobs in recent weeks had friendly dealings with Epstein after his 2008 conviction, which was widely publicized at the time.

Being mentioned in the Epstein files does not mean that someone was implicated in any of the crimes that he previously pleaded guilty to, or was later charged with. No one on the list of names compiled by CNBC of those affected by their association with Epstein has been charged for such conduct.

Here are some high-profile figures who have been burned by their appearances in the Epstein files:

Sultan Ahmed bin Sulayem: CEO of DP World

Sulayem resigned as CEO of Dubai’s largest port operator on Feb. 13, after leading the company for 10 years. Documents showed Epstein once referring to Sulayem as one of his “most trusted friends.” CNBC has reached out to the government of Dubai Media Office and DP World, seeking comment from Sulayem, who to date has not issued a statement on the situation.

Kathryn Ruemmler: Chief Legal Officer and General Counsel at Goldman Sachs

Ruemmler, a former White House counsel under then-President Barack Obama, announced her resignation from Goldman Sachs on Feb. 12, effective at the end of June. Last week, The Wall Street Journal reported that Ruemmler was one of three people Epstein called when he was arrested in July 2019. She once thanked Epstein after receiving luxury gifts from him, calling him “Uncle Jeffrey.” Ruemmler told the Journal in January: “As I have said, I regret ever knowing him, and I have enormous sympathy for the victims of Epstein’s crimes.” 

Brad Karp: Chairman of Paul Weiss

Karp resigned as chairman of Paul Weiss on Feb. 4, after leading the major corporate law firm since 2008. Files show Karp thanking Epstein for a “once in a lifetime” evening in 2015, and asking if he could help his son land a job on a Woody Allen film in 2016. Days before he resigned, Paul Weiss issued a statement to The New York Times saying, “Mr. Karp attended two group dinners in New York City and had a small number of social interactions by email, all of which he regrets.”

David Gelernter: Yale University computer science professor

Gelernter was barred from teaching classes at Yale on Feb. 11 as the university conducts a review of his relationship with Epstein. Gelernter had extensive email communications with Epstein, which included one 2011 missive in which the professor recommended a Yale student for a project, referring to her as a “small goodlooking blonde.” Gelernter has not responded to CNBC’s requests for comment after Yale took action.

Bill Clinton: Former U.S. president

Clinton flew on Epstein’s private plane multiple times in 2002 and 2003, and was photographed in casual social settings with Epstein and the sex offender’s now-convicted procurer, Ghislaine Maxwell. Clinton initially resisted a subpoena by the House Oversight Committee to testify about Epstein, but agreed to appear after it threatened to hold him in contempt of Congress. Clinton is due to testify on Feb. 27. Clinton’s spokesman in 2019 issued a statement saying, “President Clinton knows nothing about the terrible crimes Jeffrey Epstein pleaded guilty to in Florida some years ago, or those with which he has been recently charged in New York.” Clinton on Feb. 7 retweeted a post on X from his spokesman that said, “What DOJ has released thus far, and the manner in which it has done so, makes one thing clear: someone or something is being protected. We don’t know who, what, or why. We do know this: we need no such protection. It’s why only the Clintons have called for a public hearing.”

Hillary Clinton: Former secretary of State

Hillary Clinton, who is married to the former president, has said she does not recall ever speaking to Epstein. Despite that, the House Oversight Committee subpoenaed her to testify for its inquiry into the predator. Like former President Clinton, the former secretary of State initially refused to appear, but then agreed to testify on Feb. 26 after being threatened with a contempt finding. Speaking at the Munich Security Conference on Feb. 14, Clinton again called for the release of all of the Epstein files, saying, “It is something that needs to be totally transparent,” The Independent reported. “I’ve called for many, many years for everything to be put out there so people can not only see what’s in them but also, if appropriate, hold people accountable. We’ll see what happens,” she said.

Peter Mandelson: UK ambassador to the U.S.

Mandelson was fired by UK Prime Minister Keir Starmer on Sep. 12 and resigned from the Labour Party on Feb. 2 over his ties to Epstein. Mandelson wrote a note in Epstein’s 50th Birthday Book, addressing him as “my best pal,” and has been accused of sending Epstein market-sensitive government information following the 2008 financial crisis. Mandelson, in comments to the Financial Times in February 2025, said, “I regret ever meeting him or being introduced to him by his partner Ghislaine Maxwell.” He also said, “I regret even more the hurt he caused to many young women. I’m not going to go into this. It’s an FT obsession and frankly you can all f— off. OK?”

Morgan McSweeney: Chief of Staff to the U.K. prime minister

McSweeney resigned Feb. 11, taking responsibility for Starmer’s appointment of Mandelson as ambassador. McSweeney told reporters, “The decision to appoint Peter Mandelson was wrong,” adding that the former ambassador “damaged our party, our country and trust in politics itself.”

Larry Summers: OpenAI board member and former Harvard University president

Summers announced in November that he would step back from public commitments, including serving as a board member at the artificial intelligence company OpenAI and teaching classes as a professor at Harvard. The former Treasury secretary was named as a backup executor in a 2014 version of Epstein’s will. Summers, in a statement in November, said, “I am deeply ashamed of my actions and recognize the pain they have caused. I take full responsibility for my misguided decision to continue communicating with Mr. Epstein.”

Andrew Mountbatten-Windsor: Former prince, Duke of York

Andrew Mountbatten-Windsor, formerly known as Prince Andrew, Duke of York, was stripped of his titles and mansion in a statement from Buckingham Palace on Oct. 30. Mountbatten-Windsor settled a lawsuit filed by Epstein victim Virginia Giuffre in 2022 without admitting wrongdoing, and is being investigated by authorities in London for claims that he sent Epstein confidential trade documents. In a 2019 statement, Mountbatten-Windsor said, “I continue to unequivocally regret my ill-judged association with Jeffrey Epstein. His suicide has left many unanswered questions, particularly for his victims, and I deeply sympathise with everyone who has been affected and wants some form of closure. I can only hope that, in time, they will be able to rebuild their lives. Of course, I am willing to help any appropriate law enforcement agency with their investigations, if required.”

Sarah Ferguson: Former Duchess of York

Ferguson’s charity, Sarah’s Trust, which focused on improving the lives of women and children, announced on Feb. 2 that it would be shutting down. The ex-wife of Andrew Mountbatten Windsor described Epstein as “a legend” and “the brother I have always wished for” in emails long after his first conviction in 2008. In a statement to the Guardian last September, a spokesperson for Ferguson said, “The duchess spoke of her regret about her association with Epstein many years ago, and as they have always been, her first thoughts are with his victims.”

Jack Lang: President of the Arab World Institute and former Culture minister of France

Lang, the highest-profile figure in France affected by the files, resigned as president of the Arab World Institute on Feb. 7 after leading the cultural center since 2013. Lang was mentioned more than 600 times in newly released files dating back to 2012 when he was introduced to Epstein by their mutual friend Woody Allen, according to The New York Times. French authorities have said they are investigating reports of financial connections between Lang and Epstein, with the financial prosecutor’s office probing Lang and his daughter, Caroline, on suspicion of “aggravated tax fraud laundering.” Lang has called the allegations against him “baseless,” and said the investigation “will bring much light on to the accusations that are questioning my probity and my honour.” His daughter denies any wrongdoing.

Mona Juul: Norwegian ambassador

Juul resigned on Feb. 8 after Norway’s foreign ministry suspended her earlier in the week. She resigned after reports that her children and husband, Terje Rød-Larsen, were left $10 million in a will written by Epstein two days before his suicide. Juul said in early February that she had contact with Epstein through Rød-Larsen, but also said that she “should have been much more careful.”

Miroslav Lajčák: National security advisor to the prime minister of Slovakia and former president of the UN General Assembly

Lajčák resigned Jan. 31 after serving four Slavic governments. Messages from 2018 show Lajčák discussing women with Epstein, writing, “Why don’t you invite me for these games? I would take the ‘MI’ girl.” Lajčák reportedly told Radio Slovakia, “When I read those messages today, I feel like a fool.” He said in the same interview that he had shown “poor judgment and inappropriate communication … Those messages were nothing more than foolish male egos in action, self-satisfied male banter.” He added, “There were no girls … the fact that someone is communicating with a sexual predator does not make him a sexual predator.”

David Ross: Chair of New York’s School of Visual Arts

Ross, formerly the director of the Whitney Museum, resigned as the chair of the Master of Fine Arts in art practice at SVA on Feb. 3. Ross called Epstein “incredible” after he suggested an exhibit featuring girls and boys aged 14-25 titled “Statutory.” Ross told The New York Times that he regretted being “taken in” by Epstein’s claim that he had been the victim of a political frame-up because of his connection to Bill Clinton. “I continue to be appalled by his crimes and remain deeply concerned for its many victims,” he told the Times.

Joanna Rubinstein: Chair of Sweden for the UN Refugee Agency

Rubinstein announced her resignation on Feb. 2 from the United Nations High Commissioner for Refugees after documents unveiled a 2012 family visit to Epstein’s private island. In an email, Rubinstein thanked Epstein for “an afternoon in paradise” on behalf of her children and herself. “I was aware of the verdict at the time of the visit. What has subsequently emerged about the extent of the abuse is appalling and something I strongly distance myself from,” Rubinstein told the Swedish newspaper Expressen.

Casey Wasserman: Founder, Chairman and CEO of Wasserman talent agency; Chairman of the LA28 Olympic and Paralympic Games

Wasserman, owner of a high-profile talent and marketing agency and the chairman of the 2028 Los Angeles Olympic and Paralympic Games, began the process of selling his company after emails between him and Maxwell from over 20 years ago were made public. Following the revelations, several clients, including Grammy winner Chappell Roan, announced they were leaving the agency. Wasserman said he “never had a personal or business relationship with Jeffrey Epstein” and that he’d “become a distraction” in a memo to his staff, which was reported by The Wall Street Journal. The Journal also reported, citing people familiar with the situation, that the committee organizing the LA Olympic Games had voted unanimously to keep Wasserman as chairman.

Steve Tisch: Chairman and co-owner of the New York Giants

The National Football League announced Feb. 2 that it will look into Tisch, a former film producer who has been the Giants’ executive vice president since 2005. Tisch was named over 400 times in the files, with one document showing that he asked Epstein whether women were “pro or civilian.” In a January statement to ESPN, Tisch said, “We had a brief association where we exchanged emails about adult women, and in addition, we discussed movies, philanthropy, and investments.” Tisch added, “I did not take him up on any of his invitations and never went to his island. As we all know now, he was a terrible person and someone I deeply regret associating with.”

Thorbjørn Jagland: Former prime minister of Norway

Jagland was charged with “aggravated corruption” on Feb. 12 after a police probe into his ties with Epstein. Jagland, who served as Norway’s prime minister from 1996 to 1997, is being investigated to see whether “gifts, travel and loans were received in connection with his position,” according to investigators. A 2014 email shows a planned visit for Jagland and his family to Epstein’s private island in the U.S. Virgin Islands. Jagland’s lawyers have said he “denies all the charges.”

Jes Staley: CEO of Barclays

Staley served as CEO of Barclays from October 2015 until his resignation in late 2021. Staley’s departure followed a probe by the UK’s Financial Conduct Authority into his relationship with Epstein. The regulator fined him more than $2 million and permanently banned him from holding a management role in the sector in 2023. In 2020, Staley said, “Obviously I thought I knew him well and I didn’t. For sure, with hindsight with what we know now, I deeply regret having any relationship with Jeffrey.”

Alex Acosta: U.S. Labor secretary

Acosta announced his resignation in a letter to President Donald Trump on July 12, 2019, following controversy over his striking a federal non-prosecution deal with Epstein in 2008 when he was the U.S. attorney for the Southern District of Florida. Acosta defended that deal — which had required Epstein to plead guilty to Florida state charges of soliciting a minor for prostitution — in six hours of testimony in September to the House Oversight Committee. “I testified for six hours. I’ll let the record speak for itself,” Acosta said after the hearing.

— CNBC’s Garrett Downs contributed to this report.

WATCH: Commerce Sec. Howard Lutnick admits visiting Epstein island during family vacation