The daily cost of hiring a supertanker to carry oil from the Middle East to China has surged to a record high of over $400,000, following Iran's move to close the Strait of Hormuz, Reuters reported Tuesday, citing LSEG data.

The Strait sits between Iran and Oman and handles one-fifth of the world's oil supply, along with large volumes of gas, according to the report.

The benchmark freight rate for very large crude carriers (VLCCs) on the route, known as TD3, climbed to W419 on the Worldscale measure as of Monday, or $423,736 per day, Reuters said, citing LSEG data.

That rate reportedly doubled from Friday, following gains from a six-year high reached last week, after the U.S. and Israel attacked Iran and killed Supreme Leader Ayatollah Khamenei on Saturday.

In retaliation, Iran has since struck Gulf countries, prompting shutdowns of oil and gas facilities across the region.

QatarEnergy suspended LNG production after "military attacks" on its facilities, while Aramco temporarily shut its Ras Tanura oil refinery following a drone attack.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)