US-Iran war: This shipping ETF delivered 860% YTD return amid Strait of Hormuz blockade
Since the onset of the US-Iran war in late February 2026, the Breakwave Tanker Shipping ETF has surged more than 220%. Over the past three months, it has gained nearly 300%, while six-month returns stand at over 745%.
The US-Iran war in the Middle East has sent shockwaves through global energy markets, triggering a sharp surge in crude oil prices and severely disrupting maritime trade routes. With the Strait of Hormuz — a critical artery for global oil shipments — effectively shut, financial markets worldwide have come under pressure.
However, amid the volatility, investors have flocked to an unlikely winner: the cost of transporting crude oil.
An exchange-traded fund (ETF) tracking oil tanker freight rates has emerged as one of the best-performing investment vehicles during the geopolitical crisis. The Breakwave Tanker Shipping ETF (BWET), which tracks crude oil tanker freight futures, has surged over 860% so far in 2026 as disruptions in the Strait of Hormuz pushed both oil prices and shipping costs sharply higher.
What is BWET?
The Breakwave Tanker Shipping ETF (BWET) is designed to reflect the daily price movements of indices linked to the future cost of transporting crude oil by sea. The fund provides investors with unleveraged exposure to oil tanker freight futures without requiring a futures trading account.
Unlike conventional energy ETFs that track crude oil prices, BWET focuses exclusively on crude oil tanker freight rates. The fund seeks to benefit from spikes in freight futures that exceed what markets have already priced in, making it particularly sensitive to disruptions in global shipping routes.
Launched in May 2023 with an initial portfolio of approximately $30 million, BWET currently manages around $48 million in assets — a relatively small slice of the nearly $13 trillion US ETF market. The fund is listed on the NYSE Arca.
BWET’s Explosive Rally
BWET has delivered extraordinary returns amid escalating geopolitical tensions.
Since the onset of the US-Iran war in late February 2026, the ETF has surged more than 220%. Over the past three months, it has gained nearly 300%, while six-month returns stand at over 745%. On a one-year basis, the fund has delivered a staggering return of nearly 1,450%.
The rally underscores how freight markets tend to react sharply during disruptions to global shipping and maritime traffic. Any threat to oil transportation routes typically drives freight futures higher — a trend that has directly benefited BWET.
Crude oil prices at the peak of the conflict had surged by over 100% in 2026.
About the Author
Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corporate leaders, and policymakers, translating their perspectives into sharp, data-backed narratives. Ankit combines speed with accuracy — ensuring timely, credible, and insight-driven financial journalism that empowers both retail and institutional audiences.
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