Bob McNally, president of Rapidan Energy Group, suggests that while physical Iranian barrels have vanished from the count, the crude futures market is failing to account for the resulting geopolitical volatility. Brent Crude prices surpassed $91 per barrel this week as the prospect of renewed negotiations between Washington and Tehran continues to fade, leaving shipping security in the Middle East increasingly precarious.

Refined products are signaling a different reality than crude futures, highlighting an acute tightness in global supply. The U.S. diesel crack spread reached an unprecedented $102 per barrel this week, marking the first time the premium has hit triple digits. As the standoff persists, the market remains pessimistic regarding the near-term reopening of the Strait of Hormuz, forcing analysts to warn that crude prices may soon surge to align with the record-breaking costs of refined fuels.