Oil Prices Soar to Nearly $150 Amid Hormuz Tensions

• Iran's Hormuz closure has eliminated 12 million barrels per day, forcing refiners to scramble for replacement crude from Europe and Africa at premium prices
• Dated Brent (immediate delivery) is trading nearly $20 above June Brent futures ($119.50), reflecting extreme tightness in prompt physical markets
• Refined product prices are near records, with European jet fuel at $226.40/barrel (close to March highs) and diesel at $203.59/barrel

Oil Prices Soar to Nearly $150 Amid Hormuz Tensions - Summary

Key Development: European and Asian refiners are paying record prices near $150 per barrel for certain crude oil grades, significantly exceeding paper futures prices, as the U.S.-Israel conflict with Iran creates a severe supply crisis.

Critical Supply Impact: Iran has effectively closed the Strait of Hormuz, shutting down at least 12 million barrels per day—approximately 12% of global oil supply—from the Middle East. This has created an urgent scramble for alternative crude sources.

Price Benchmarks:

• Brent oil futures reached $119.50/barrel in March (highest since 2022, below 2008 record of $147.50)
• North Sea Forties crude hit an all-time high of $146.09/barrel on April 7
• Dated Brent (physical benchmark) trades nearly $20 above June Brent futures, reflecting premium for immediate delivery
• Jet fuel in Europe: $226.40/barrel (near mid-March record)
• European diesel: $203.59/barrel (below 2022 record high)

Market Dynamics: The extreme price divergence between physical crude and futures contracts highlights a fundamental supply shortage. According to veteran trader Adi Imsirovic, "panic" over immediate supplies is the main driver, with buyers prioritizing current delivery over future contracts. Morgan Stanley analysts note refiners are "scrambling for prompt, refinery-usable barrels."

Sector Implications: The crisis is particularly acute in Europe and Asia, where refiners must replace disrupted Middle Eastern oil flows with alternative sources from Europe and Africa, driving African and North Sea crude to record levels.

Timeline: The article is dated April 7, 2026, with prices reaching critical levels following conflict escalation in March 2026.