Oil traders are paying an eye-watering $160 a barrel for Emirati oil that can dodge the Strait of Hormuz, far above global benchmarks.
Asian customers are scouring the world for similar varieties of crude to keep churning out diesel and jet fuel.
Unless peace talks pan out fast, record high prices for specific grades of Middle Eastern crude cargoes will soon cascade to the U.S. and elsewhere.
Energy analysts warn that the disruption is so massive, they will turn into full panic mode if the situation is not resolved quickly.
Oil prices appear to move on every headline about the war, but it can take weeks or months for them to ripple through the complex logistical and financial system.
The most yawning gap in prices is between oil that used to flow out of the Gulf and different kinds of crude from farther afield.
Prices for a grade of crude known as Dubai have risen well over 150% so far in 2026.
Asian refiners are hunting for sulfur-rich oil to replace the Middle Eastern grades that are getting prohibitively expensive.
Cargoes are diverting from Europe to Asia, where the shock from the Persian Gulf is most acute and traders can earn a premium.
