VLCC rates are set to build on their two-year highs despite the latest diplomatic setback in bringing Iranian oil back to global markets, Fearnley Securities said on Monday.

Spot rates from the Middle East Gulf to East of Suez increased by 37% to $43,600 per day on Friday despite growing gloom over reviving the 2015 nuclear deal, the Oslo-based broker said.

Any easing of sanctions on Iran is likely to boost the VLCC trade with extra exports of 1m to 1.5m