Middle Eastern crude prices hit highest level since March as supply squeeze intensifies

Crude prices for Middle Eastern oil produced outside the Persian Gulf have climbed to their highest point since March, driven by mounting fears that supply disruptions in the region are far from over. Spot premiums for Dubai crude roughly doubled to $12.74 per barrel during the week of September 8-14, while Oman crude premiums rose to $12.62 per barrel, their highest since late May. For context, these premiums sit on top of already elevated benchmark prices. Dated Brent crossed the $100-per-barrel threshold in early September for the first time since May, with some North Sea grades pushing close to $110. The Strait of Hormuz bottleneck The Strait of Hormuz has seen transit volumes drop dramatically since the escalation of the US-Iran conflict. Oil flows through the strait fell from roughly 20 million barrels per day to around 11.7 million barrels per day, a decline of more than 40%. Middle East exports overall declined from approximately 19 million barrels per day in February to about 11.7 million barrels per day by March as the conflict took hold. While there was a brief period of easing earlier in the year, renewed hostilities in September, including threats and attacks targeting...