Villa Vie Residences suspended operations of its 650-passenger residential cruise ship on Tuesday, citing "extraordinary" fuel costs that have placed its business model under unsustainable financial pressure.

The Florida-based operator is evaluating restructuring and recapitalization options as it coordinates the disembarkation of passengers from its Odyssey ship, moored off Cambodia.

Fuel costs have soared more than 300% since the Gulf conflict erupted in late February. 

Very low sulfur fuel oil (VLSFO), a marine fuel used to power large ships, rose to $966 a metric ton in Singapore earlier today. At the onset of the conflict, the maritime fuel jumped to nearly $1,200 a metric ton, up from prewar levels of around $500.

"Fuel costs have risen sharply in the regions where the company has been operating. On an equivalent per-cabin basis, monthly fuel expense that historically averaged approximately $1,800 has recently reached an estimated $6,000 to $8,000 in parts of Asia. The company cannot simply pass increases of that scale on to residents, and the resulting shortfall has placed its current operating model under unsustainable financial pressure," Villa Vie Residences wrote in a press release earlier today.

The Odyssey began its continuous world voyage in October 2024, offering passengers the option to rent, own, or rent-to-own cabins. Permanent-residency cabins cost roughly $130,000 to $440,000, with monthly fees ranging from $2,000 to $10,000.