Iran Oil Sanctions Boosting Returns for Nordic American: Freight

European sanctions on buying oil from Iran are turning into a windfall for owners of Suezmax tankers, shipping the most cargoes in at least nine years as Saudi Arabia and Iraq increase supply.

Rates for the vessels, which can sail fully loaded with 1 million barrels through the Suez Canal to destinations in the Mediterranean, will rise 61 percent to an average of $19,000 a day this quarter, the median of six analyst estimates compiled by Bloomberg shows. Shares of Nordic American Tankers Ltd., which operates a fleet of 20 carriers, will gain 33 percent in 12 months, based on the average of seven forecasts.