The intensifying Iran and US-Israel war have pushed the world into an economic turmoil as the Strait of Hormuz remains closed and European and Asian refiners paying all-time highest prices of nearly $150 a barrel for certain crude oil grades.
Nearly 12 million barrels per day, nearly 12% of global supply, has been forcefully shut down due to Iran’s effective closure of the Strait of Hormuz, creating a severe oil shortage globally.
Brent futures hit $119.50 per barrel last month, the highest in nearly four years, since 2022, while the outright price of North Sea Forties crude hit $146.09 on Tuesday, exceeding its 2008 record.
The alarming surge may cause panic over prompt supply instead of long-term futures, with refiners scrambling for immediately usable barrels.
The physical benchmark, dated Brent, is trading almost $20 above June futures prices, reflecting the premium for immediate cargoes.
S&P Global Platts assessed Brent at $141.37 on April 2, close to its 2008 peak, pushing many physical cargoes more than $150.
Competition for replacement oil from Europe and Africa is intensifying, highlighting the growing stress on global energy markets.
Notably, prices of refined products have also seen a sharp increase: jet fuel in Europe hit $226.40 per barrel, near record highs, while diesel stood at $203.59.
