Iranian crude oil prices have traded at a premium to Brent for the first time since 2022.

Deep Tide TechFlow message, April 2, according to data from Argus Media, after the United States temporarily eased some Iran oil sanctions, Iranian crude oil first began trading at a premium versus the global benchmark Brent crude since May 2022. On March 26, the premium of Iran’s main export-grade crude oil over Brent was about $1 per barrel, while earlier this year under comprehensive sanctions its crude was priced at a discount of about $10 per barrel. This change shows that Tehran is benefiting from its control over the Strait of Hormuz. With Brent crude holding around $107 per barrel and global supplies constrained, buyers are willing to pay a premium for crude oil that remains still tradable. By blocking the passage of shipments from Gulf oil-producing countries while allowing its own cargoes to go through, Iran has created transportation bottlenecks, pushing up global oil prices and increasing the relative value of Iran’s light crude oil. Tanker tracking data shows that ships linked to Iran are still transporting through strategic waterways and unloading from floating storage facilities. (Jinshi Data)