Brent Oil Spot Price for Immediate Delivery Hits $141 amid Iran Conflict

The spot price for Brent crude oil for immediate delivery soared to $141.36 per barrel on Thursday, marking the highest level since the 2008 global financial crisis, according to S&P Global. 

The surge underscores severe supply disruptions triggered by the ongoing U.S.-Iran conflict and the partial closure of the Strait of Hormuz.

Unlike futures contracts, which reflect prices for deliveries months ahead, the spot price measures demand for oil arriving within the next 10 to 30 days. The dramatic increase highlights the current tightness of physical oil supplies worldwide. On Thursday, the spot price was $32.33 higher than the June Brent futures contract, which closed at $109.03 per barrel.

Latest Oil Prices: 

WTI Crude  $111.5 +11.42 +11.41%

Brent Crude $109.0 +7.87 +7.78%

Murban Crude $114.8 +11.21 +10.82%

Natural Gas $2.800 -0.019 -0.67%

Gasoline $3.288 +0.197 +6.36%

Heating Oil $4.361 +0.304 +7.50%

WTI Midland $119.3 +13.27 +12.51%

Indian Basket $120.8 -4.01 -3.21%

Energy analyst Amrita Sen, founder of Energy Aspects, warned that futures prices may mask the true severity of the disruption. “The financial market is almost giving a false sense of security that things are not that stressed,” she said in an interview with CNBC. “You are seeing it in physical deliveries, but the futures market doesn’t fully reflect the scarcity.”

Sen noted that European diesel prices have surged to nearly $200 per barrel, reflecting the immediate strain on the global oil supply chain.

Chevron CEO Mike Wirth similarly cautioned last week that oil futures do not fully account for the real-world impact of the Strait of Hormuz closure. Speaking at the CERAWeek by S&P Global energy conference in Houston, Wirth explained, “There are very real, physical manifestations of the closure of the Strait of Hormuz that are working their way around the world and through the system that I don’t think are fully priced into the futures curves on oil.”

The surge in Brent spot prices comes amid broader geopolitical tensions and escalating conflict in the Persian Gulf, raising concerns over energy security and the potential for soaring fuel costs worldwide. Analysts warn that, without resolution, the tight supply could exacerbate inflationary pressures across global markets, affecting consumers and industries alike.