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Strait of Hormuz traffic plunges as US, Iran resume fighting

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Published10 JUL 26 - 06:53 Reading time  minutes

“Diesel, in particular, is grappling both from the loss of supply from the Middle East refineries, and from Russian refineries facing relentless attacks by Ukrainian drones, leading to skyrocketing diesel prices beyond seasonal norms against crude.” — June Goh, Senior Oil Analyst at Sparta Commodities

  • Expert: June Goh (Senior Oil Analyst, Sparta)
  • Publication: Al Jazeera
  • Market Focus: Crude Oil, Diesel, Refining, Middle Distillates
  • Geographies: Middle East, Russia, Asia, Singapore

In a recent analysis for Al Jazeera, Sparta’s Senior Oil Analyst, June Goh, highlighted that refined products, not crude, are absorbing the sharpest price pressure from the renewed Strait of Hormuz conflict. Diesel is being squeezed from two directions at once, lost Middle East refinery supply and sustained Ukrainian drone strikes on Russian refineries, pushing prices well beyond seasonal norms against crude. This divergence comes as Brent held near $76.58 a barrel even as vessel transits through the strait collapsed to just five a day, down from 130 before the war. Traders should watch diesel-crude spreads and Russian refinery outage reports closely as the key signal of how far this divergence can run.

[Read June Goh’s full market commentary in Al Jazeera]

Author

June Goh

Senior Oil Analyst

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