Physical Oil Hits Record $150 as Hormuz Crisis Deepens

European and Asian refiners are paying record prices near $150 per barrel for crude oil grades, exceeding paper futures prices as the Iran conflict worsens supply disruptions.

The conflict has shut down 12 million barrels per day - 12% of global supply - from the Middle East through Iran's effective closure of the Strait of Hormuz. Brent oil futures reached $119.50 per barrel, highest since 2022.

North Sea Forties crude hit $146.09 per barrel Tuesday, surpassing the 2008 record and reaching an all-time high. Physical crude benchmarks trade nearly $20 above June futures, reflecting immediate delivery premiums.

"When there is a real, physical shortage, people are not thinking about July delivery - they want oil NOW," said veteran oil trader Adi Imsirovic. Morgan Stanley analysts noted markets scrambling for immediate refinery-usable barrels.

European refined product prices approach records. Jet fuel trades at $226.40 per barrel near March highs, while diesel stands at $203.59 per barrel.