Iranian crude oil prices trade at a premium to Brent for the first time since 2022

Odaily News According to Argus Media data, following the US's temporary relaxation of some sanctions on Iranian oil, Iranian crude oil has traded at a premium to the global benchmark Brent crude for the first time since May 2022. On March 26, Iran's main export-grade crude oil traded at a premium of approximately $1 per barrel to Brent, whereas at the beginning of this year, under comprehensive sanctions, its crude was discounted by about $10 per barrel. This change indicates that Tehran is benefiting from its control over the Strait of Hormuz. With Brent crude maintaining around $107 per barrel and global supply constrained, buyers are willing to pay a premium for crude oil that remains accessible. By impeding the passage of Gulf oil-producing nations while allowing its own shipments, Iran has created a transportation bottleneck, driving up global oil prices and enhancing the relative value of Iranian light crude. Tanker tracking data shows that vessels associated with Iran continue to transport through the strategic waterway and are unloading from floating storage facilities. (Jin10)