A Swiss commodities trader, Lytton SA, purchased crude oil at a steep discount of $18 per barrel below the benchmark price at Iraq's Basra port. The company then undertook a perilous voyage through the Strait of Hormuz to deliver the oil to Vietnam, securing an estimated gross profit of approximately $60 million. However, exorbitant freight costs ranging from $35 million to $40 million severely compressed the net profit margin. The journey was fraught with obstacles: the tanker was twice ordered to turn back by Iranian authorities, only proceeding after intervention by the Iraqi government. After exiting the strait, the vessel was then intercepted by the U.S. military and held for five days, finally being released following a formal request from PetroVietnam Oil. The turmoil in oil markets, fueled by conflict in the Middle East, is creating extraordinary profit opportunities for traders willing to assume significant risks.
According to reports, the recent high-profile transit of the tanker "Agios Fanourios I" involved Lytton SA as the operator orchestrating the shipment of Iraqi crude from the Persian Gulf to Vietnam via the Strait of Hormuz. By purchasing the crude at a deep discount in Basra and capitalizing on premiums outside the Gulf, the trader's gross profit from the deal is estimated at around $60 million.
Despite the impressive gross figure, the actual net profit was substantially lower. Informed sources indicate that freight costs have skyrocketed since the outbreak of war, with the cost for the "Agios Fanourios I" voyage reaching between $35 million and $40 million. Furthermore, demurrage fees—daily charges for delays incurred during forced stoppages—rapidly eroded the trading profit. Eastern Mediterranean, the ship's management company, stated it could not "confirm" the specific financial details related to the cargo.
This case exemplifies how traders are profiting from the historic volatility in commodity markets triggered by regional conflict. Currently, the world's top oil traders are reporting record-breaking margins, with profits reaching $20 to $30 per barrel, compared to mere cents under normal market conditions.
**The Key Intermediary: Lytton SA's Role**
Sources reveal that the entity behind this high-stakes "crude oil passage" across the Strait of Hormuz was not the end buyer but a relatively new trading firm, Lytton SA, established just two years ago. Founded in 2024 and headquartered in Geneva, the company was co-founded by former Trafigura oil trader Hakim Darbouche and former Onex DMCC executive Alan Konyar. Despite its short history, Lytton has gained recognition for marketing petroleum products from Iraq's Kurdish Taurus refinery and is active in trading crude oil, refined products, and naphtha in the Mediterranean and East Asia.
While the ultimate buyer of the nearly 2 million barrels of Iraqi crude aboard the "Agios Fanourios I" was PetroVietnam Oil Corp., a subsidiary of the Vietnam Oil and Gas Group, Lytton SA was the actual operator responsible for coordinating the transit and subsequent logistical arrangements.
For weeks, the fate of this tanker captivated global energy markets. Traders have been closely monitoring satellite data since early this month, seeking signals from its voyage about the normalization of shipping through the critical Strait of Hormuz.
**Thrice Hindered, Diplomatic Intervention Secures Passage**
The passage of the "Agios Fanourios I" was exceptionally turbulent. According to sources, the tanker only commenced its journey after the Iraqi government directly intervened to secure clearance from Iranian authorities. Subsequently, during its attempts to traverse the Strait of Hormuz, the vessel was twice ordered by Iran to turn back. Intensive renewed diplomatic efforts by the Iraqi government were required to secure another opportunity for passage.
During a third attempt, the situation escalated further. Iranian authorities even instructed the tanker to divert to its main port of Bandar Abbas. In response, ship manager Eastern Mediterranean Maritime issued a statement emphasizing that the vessel never called at any Iranian port nor was it ever boarded and inspected by Iranian officials.
The supertanker finally succeeded in exiting the Strait of Hormuz on the evening of May 10th. However, new trouble arose immediately. The U.S. Navy subsequently intercepted the vessel on suspicion that it might be carrying Iranian crude. Faced with this development, buyer PetroVietnam Oil urgently dispatched a letter to the U.S. Navy's Central Command, stating the crude supply was "critical" for Vietnam and requesting its prompt release. After a five-day wait and verification by U.S. authorities, the "Agios Fanourios I" was finally permitted to continue its voyage. Eastern Mediterranean Maritime stated it had consistently informed relevant authorities that the ship was carrying Iraqi, not Iranian, crude but has not been informed of the specific reason for the U.S. military interception.
**High-Stakes Gambit: Sanctions and Commercial Allure in the Strait of Hormuz**
Whether this incident will become a template for other tankers remains to be seen. However, reports indicate that Vitol Group, one of the world's largest energy traders, recently completed a ship-to-ship transfer of Iraqi crude outside the Persian Gulf, suggesting its vessels may have also successfully transited the Strait of Hormuz. Shipping volumes through the strait have increased over the past week, indicating some shipowners and traders are reassessing the risks.
Yet, the risks have not vanished. Beyond safety concerns, sanctions present a formidable challenge. Iran demands transit fees from vessels, though the enforcement of this policy remains unclear. Meanwhile, the U.S. Treasury has warned that paying such fees to Iran may violate sanctions, exposing foreign companies that make payments to potential U.S. sanctions.
Caught between the commercial imperative of accessing the world's most crucial oil export chokepoint and the potential cost of breaching sanctions red lines, shipowners, traders, and refiners operating in the Persian Gulf continue to navigate a profound dilemma.