How Shipping ETFs Turned the Iran Conflict Into Huge Profits

On September 10, seven ships passed through the Strait of Hormuz. In the period before the war, the daily average was roughly 125. Four little-known funds have spent 2026 converting that collapse into gains.

There are only about four shipping exchange-traded funds listed in the US. Their combined assets sit below $450 million, a negligible figure on Wall Street.

Four Funds, Four Distinct Wars

The Breakwave Tanker Shipping ETF (BWET) has surged more than 3,200% this year, according to Yahoo Finance data. It was trading near $781.92 on Monday, compared with a 52-week low of $13.58. Since the conflict began, this fund has climbed 1,300%.

Freight rates have gone vertical since the US-Iran war started. $BWET, the Breakwave Tanker Shipping ETF, is up 1,300% since the war began on 28th Feb 2026, including today's 10% pre-market move. Producing and moving oil are both getting super expensive.

— Bull Theory (@BullTheoryio) September 14, 2026

Although only that one went parabolic, the others are also in positive territory. Breakwave Dry Bulk (BDRY) has risen about 95% over the last twelve months. SonicShares Global Shipping (BOAT) is up 69%. US Global Sea to Sky Cargo (SEA) has gained 45%.

“It is hard to find something more niche than this,” said Todd Sohn, chief ETF strategist at Baird Strategas.

Owning Bets Beats Owning Boats

BWET and BDRY hold freight futures, which lock in the cost of moving cargo on a specific route weeks ahead. When hiring a vessel becomes pricier, these funds rise with it. On September 10, the supertanker rate from the Gulf to China hit a record $862,150 a day on the Baltic Exchange.

BOAT and SEA, by contrast, own the shipping firms themselves, including names like Frontline and Maersk. Real companies carry debt and move slowly. They captured the boom, not the spike.

Iran and the US have been at war since February 28. Ships halted their voyages. Insurance became too costly. Saudi Arabia closed its East-West pipeline, the final route that bypassed the strait. Oman then postponed discussions on reopening it. Brent crude above $100 rose 3% Monday past $110.

The cost falls on consumers. BeInCrypto reported record US diesel prices crossing $6 a gallon, an all-time high in 28 states.

The Trade Depends on the War

Any move toward peace means losses for those holding these funds. One of their creators admits it.

“If there is a normalization in the Strait of Hormuz, you would expect freight rates to come down, and that would affect freight futures as well,” said John Kartsonas, founder of Breakwave Advisors.

Oman has not set a new date. The freight market is not holding its breath.