Sailor Salaries Skyrocket as Danger Surges in the Strait of Hormuz Amid Conflict

As shipping traffic through the besieged Strait of Hormuz dropped to its lowest level since July, reports reveal that sailors are receiving massive bonuses to navigate the hazardous Gulf waterway. Captains are commanding base salaries of up to $100,000 alongside a $50,000 bonus per voyage, according to the UK’s Financial Times.

Despite ongoing attacks on tankers, Middle Eastern oil exports rose above pre-war levels late last month. However, Kpler shipping data indicates that roughly 40 percent of these exports are leaving the region through pipeline networks and smaller shuttle boats conducting risky ship-to-ship transfers.

According to Kpler, at least 16.5 million barrels departed the region last month, matching pre-war averages excluding Iran, which faces a US naval blockade. Nonetheless, about 40 percent of this volume relies on Saudi Arabia’s East-West pipeline or clandestine ship-to-ship transfers by smaller vessels navigating undetected through the strait.

The number of detectable vessels passing through the crucial waterway dropped to a two-month low, with only seven ships passing through in the previous week—the lowest figure since July 23. Many smaller shuttle boats now turn off their transponders to evade detection before offloading oil to larger tankers waiting outside the strait.

The dangers for sailors remain extreme. Following the outbreak of the US-Iran war in late February, Tehran effectively closed the strait, permitting only a limited number of vessels to pass while striking unauthorized crossings. In response, the US imposed a naval blockade on Iranian ports and has escorted select vessels through the passage.

Saul Kavonic, energy head at MST Marquee, told Reuters that Iranian attacks on ships have reached their highest frequency since the conflict began and are expected to escalate further, keeping oil prices elevated.

Oil prices climbed on Thursday morning, with Brent crude futures rising $2.28 to $102.28 a barrel and US West Texas Intermediate crude futures gaining $1.66 to reach $89.94. This increase persists despite alternative export routes like Saudi Arabia's East-West pipeline, which has faced intermittent closures due to strikes from Iran-backed groups.

To cope with the extreme risks, shipping companies are offering extraordinary financial incentives. Tanker captains can earn base salaries of $100,000 plus a $50,000 per-trip bonus, with overall ship crews making four to six times their standard wages. Major shipping lines are spending between $30m and $40m for single round trips, offering lucrative returns for shipowners and mariners alike—many of whom originate from India, the Philippines, and China.

Navigating the strait requires extreme secrecy. Crews on larger ships and shuttle boats must extinguish lights, power down phones, and operate with minimal radar to avoid detection. Captains rely on coastlines and lighthouses for navigation, while LNG tanker crews even barricade main decks with sandbags as protection against potential drone or missile strikes, with shipping executives estimating a one-in-20 chance of being hit during a crossing.