North Sea Oil Prices Surge to Record $147 as Iranian Control of Strategic Strait Triggers Global Supply Crisis

Physical oil prices surge as Iran maintains its grip on the Strait of Hormuz. Discover why Saudi production cuts and logistical backlogs are fueling a $147 peak.

By: AXL Media

Published: Apr 10, 2026, 9:17 AM EDT

Source: Information for this report was sourced from the Financial Times

Physical Market Decouples from Futures Amid Shortage Fears

The global energy crisis reached a critical inflection point on Thursday as Forties Blend, a key marker for North Sea oil, surged to nearly $147 per barrel. This record-breaking price surpassed the historic peaks seen during the 2008 financial crisis, reflecting a desperate scramble among European and Asian refineries to replace volumes currently trapped in the Persian Gulf. While the international Brent futures benchmark hovered around $97, the massive gap—or "super-backwardation"—indicates that traders are prioritizing immediate physical possession of oil over future deliveries. This disconnect suggests that market participants are increasingly skeptical of the current ceasefire’s ability to restore normal supply chains.

Trading Infrastructure Buckles Under Price Volatility

The intensity of the physical oil rush has disrupted the fundamental mechanics of the European energy market. On Thursday, traders reported an unprecedented suspension in the trading of Brent "contracts for difference" (CFDs) after the price spread for immediate delivery exceeded $30 a barrel. This move breached the automatic thresholds set by the Intercontinental Exchange (ICE), effectively freezing a vital hedging tool used by the industry to manage price risk. Market veterans noted that they could not recall a similar instance where these exchange-traded contracts became untradable, forcing some firms to conduct opaque, "off-exchange" deals to secure necessary positions.

Tehran Maintains Strategic Leverage Over Global Transit

Despite President Donald Trump’s assurances that oil would "very quickly" start flowing again, the reality on the water remains stagnant. According to Goldman Sachs, exports through the Strait of Hormuz are currently running at just 8% of their pre-war levels. Tehran has utilized the two-week pause in hostilities to formalize its control over the waterway, requiring all vessels to seek explicit permission from the Islamic Revolutionary Guard Corps (IRGC) and pay controversial transit fees. In a retaliatory move following Israeli strikes on Lebanon, Iran reportedly halted the passage of several tankers, signaling that the waterway remains a tool of geopolitical coercion rather than a free international passage.