Iranian Crude Oil Prices Premium Over Brent for the First Time Since 2022

On April 2, data from Argus Media indicated that following the temporary easing of some U.S. sanctions on Iranian oil, Iranian crude has for the first time since May 2022 traded at a premium to the global benchmark Brent crude. On March 26, Iran’s main export grade crude was priced about $1 per barrel above Brent, whereas earlier this year, under full sanctions, it was discounted by approximately $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 limited, buyers are willing to pay a premium for crude that is still available for circulation. By blocking the passage of Gulf oil producers while allowing its own goods to flow, 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 strategic waterways and unload from floating storage facilities.