Turmoil in the oil market, sparked by Middle East conflict, is generating extraordinary profits for traders willing to shoulder significant risk. A closely watched transit of the tanker "Agios Fanourios I" earlier this month was orchestrated by Swiss trading firm Lytton SA, which was responsible for moving a cargo of Iraqi crude from the Persian Gulf through the Strait of Hormuz to Vietnam. The company purchased the crude at Iraq's Basra port at a discount of $18 per barrel below the benchmark price. Factoring in the premium for oil delivered outside the Persian Gulf, the gross profit from this single trade is estimated to be around $60 million. While the gross profit figure is substantial, the actual net profit is significantly lower. According to sources, freight rates have surged dramatically since the outbreak of war, with the transport cost for the "Agios Fanourios I" estimated at $35 to $40 million. Furthermore, demurrage fees—daily charges levied by shipping companies for delays—incurred due to multiple forced stoppages are rapidly eroding the trade's profitability. Eastern Mediterranean, the vessel's management company, stated it could not "confirm" the financial details related to the cargo. This case exemplifies how traders are profiting from the historic turbulence in commodity markets triggered by the Iran conflict. Currently, the world's top oil traders are recording record-breaking earnings, with profits reaching $20 to $30 per barrel, compared to just a few cents under normal market conditions. **The Key Intermediary: Lytton SA's Role** According to sources, the mastermind behind this high-stakes "crude oil passage" across the Strait of Hormuz was not the ultimate 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 already made a name for itself by acting as an agent for selling petroleum products from the Taurus refinery in Iraq's Kurdistan region. It is also active in trading crude oil, refined products, and naphtha in the Mediterranean and East Asia. Sources indicate that while the ultimate buyer for the nearly 2 million barrels of Iraqi crude aboard the supertanker "Agios Fanourios I," bound for Vietnam, was PetroVietnam Oil Corp, a subsidiary of the Vietnam Oil and Gas Group, the entity responsible for coordinating the transit and subsequent shipping arrangements was Lytton. For weeks, the fate of this tanker has captivated the global energy market. Since the beginning of the month, traders have been closely monitoring satellite data, hoping its voyage would signal a return to normalcy for shipping through the Strait of Hormuz. **Thrice Hindered, Diplomacy Clears the Way** The passage of the "Agios Fanourios I" was fraught with complications. According to sources, the tanker initially received clearance from Iranian authorities to depart only after direct intervention and coordination by the Iraqi government. However, during its subsequent attempts to traverse the Strait of Hormuz, the vessel was twice ordered by Iran to turn back. The Iraqi government had to engage in a new round of intensive diplomatic efforts before the tanker was granted another opportunity to pass. During the third attempt, the situation escalated further. Iranian authorities reportedly demanded the tanker divert to its main port of Bandar Abbas. In response, vessel manager Eastern Mediterranean Maritime issued a statement emphasizing that the ship never called at any Iranian port and was never boarded or inspected by Iranian officials. It was not until the evening of May 10th that the supertanker finally succeeded in exiting the Strait of Hormuz. But new trouble arose immediately. The U.S. Navy subsequently intercepted the vessel on suspicion that it might be carrying Iranian crude. Faced with this sudden development, the buyer, PetroVietnam Oil, urgently sent a letter to the U.S. Navy's Central Command, stating that 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 that it had consistently and clearly informed relevant authorities that the vessel was transporting Iraqi, not Iranian, crude, but has not been informed of the specific reason for the U.S. military interception. **High-Risk Gambit: Sanctions and Commercial Allure in the Strait of Hormuz** Whether this incident will serve as a model for other tankers to follow remains to be seen. However, according to reports, 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 tanker may have also successfully navigated the Strait of Hormuz. Shipping volumes through the strait have also seen a recovery over the past week, indicating some shipowners and traders are reassessing the risks. But the risks have not vanished. Beyond security concerns, sanctions pose an equally complex challenge. Iran demands transit fees from vessels, though the specifics of enforcement are unclear. Meanwhile, the U.S. Treasury Department has warned that paying such fees to Iran could violate sanctions, putting foreign companies that make payments at risk of facing U.S. sanctions. Caught between the commercial incentive of accessing the world's most critical oil export chokepoint and the potential cost of triggering sanctions red lines, shipowners, traders, and refiners operating in and around the Persian Gulf continue to navigate a difficult balancing act.