A substantial price gap exceeding $40 per barrel has reportedly emerged between specific crude oil grades, attributed to heightened risk surrounding the Strait of Hormuz. This disparity contrasts with market conditions in late June, when a 60-day agreement between the United States and Iran to de-escalate Persian Gulf hostilities led to a decline in oil prices.
Two months subsequent to that agreement, Brent crude is trading above $107 per barrel, while West Texas Intermediate (WTI) is approaching $103 per barrel. This pricing divergence highlights a clear distinction between crude supplies that face potential threats from drone or missile attacks within the Gulf and those that can be transported without such risks.
The conflict involving the U.S., Israel, and Iran has particularly impacted Iraq, the second-largest producer within OPEC. The country's oil sector has reportedly experienced some of the most severe operational disruptions stemming from this geopolitical situation.
This information was reported by OilPrice.com.