Brent spot crude has moved above $140. As of April 2, Dated Brent was quoted at $141.37, its highest level since the 2008 financial crisis. The surge comes as the continued closure of the Strait of Hormuz squeezes the supply of physical oil in the global market.
Spot market tightness is outpacing futures
The strongest signal is coming from the cash market rather than the paper market. While Dated Brent climbed past $141, the front-month Brent futures contract was still trading around $107 to $109. That wide gap points to a steep spot premium, showing that refiners are competing for limited barrels available for near-term delivery.
Dated Brent is one of the most important spot benchmarks in global crude trading, reflecting the value of physical cargoes for delivery in roughly 10 to 30 days. Compared with futures, it gives a clearer read on what buyers have to pay for oil that can actually be secured. Right now, that message is blunt: physical supply is tight.
Hormuz closure disrupts exports from major producers
The main driver behind the spike is the ongoing blockade of the Strait of Hormuz. According to the source material, the waterway has remained shut for more than one month after military action by the United States and Israel against Iran triggered conflict. The strait normally carries about one-fifth of global oil transport flows, making it one of the most important chokepoints in the energy trade.
Exports from major Middle Eastern producers including Saudi Arabia, the UAE and Iraq have been severely affected. The International Energy Agency described the event as “one of the most severe oil supply disruptions in history.” As pre-conflict inventories are gradually drawn down, the oil market has become more exposed to the shortage.
Inflation pressure returns as energy costs rise
Higher crude prices feed directly into inflation through energy, transport and petrochemical costs. That creates a harder policy setting for central banks such as the Federal Reserve, especially if inflation risks start to rise again.
The source also said analysts have warned that if the Strait of Hormuz does not reopen soon, oil prices could test $150 or even higher. For now, the market is focused on a few simple variables: how long the blockade lasts, how quickly stockpiles are depleted, and whether the shortage in physical supply gets worse.