Hormuz risk opens $43 price gap between Gulf and non-Gulf crude grades

September 16, 2026 at 03:00 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Iraq's Basrah Medium for October loading is offered at a $43.06 per barrel discount to Abu Dhabi's Murban benchmark, reflecting the price gap between crude that must transit the Strait of Hormuz and crude that does not. Murban, loaded outside the chokepoint at Fujairah, trades above $127 per barrel, while tanker movements through Hormuz remain severely subdued. The discount shrinks once cargoes clear the strait, underscoring resilient demand even as Brent trades above $107.

Key Facts

Iraq's Basrah Medium for next-month loading is offered at a $43.06 per barrel discount to the Murban benchmark, according to Argus data cited by Reuters.
Murban crude, ADNOC's flagship blend loaded at Fujairah outside the Strait of Hormuz, trades above $127 per barrel.
Windward ship-tracking data recorded one outbound tanker and two inbound tankers through the Strait of Hormuz on September 14, all three being LPG carriers.
Australian medium sweet Pyrenees crude traded at $138.04 per barrel on September 11, up from $70.59 on February 27, making it the most expensive blend tracked by Argus.
Brent trades above $107 per barrel and WTI approaches $103, while Russian crude commands a premium over Brent despite sanctions.

The Hormuz Price Gap

Iraq's Basrah Medium for loading next month is offered at a discount of $43.06 per barrel to the regional Murban benchmark, Reuters' Clyde Russell reported, citing Argus data. Murban crude, ADNOC's flagship blend, trades at over $127 per barrel, while most Iraqi crude loads inside the Persian Gulf. Murban is loaded at the port of Fujairah, which sits just outside the Strait of Hormuz, whereas Iraqi cargoes must transit the chokepoint. Iraq has offered heavy discounts to entice buyers to accept the risk of moving oil out of the Persian Gulf, despite reports that Iran granted an exemption to Iraqi oil cargoes from attack threats.

Tanker Traffic and Demand

Ship-tracking data shows tanker movements via the Strait of Hormuz remain severely subdued, especially after the latest attacks. Windward reported one outbound tanker and two inbound tankers for September 14, all three being liquefied petroleum gas carriers. Once oil gets out of Hormuz, prices jump and the discount shrinks, as demand for physical oil trumps safety and insurance concerns. This dynamic highlights the resilience of crude demand even with prices significantly higher than at the start of the year.

Non-Gulf Crude Premiums

Crude produced outside the Persian Gulf is enjoying higher prices, with Australian medium sweet Pyrenees the most extreme example. Pyrenees traded at $138.04 per barrel last Friday, compared with $70.59 per barrel on February 27, before the U.S. and Israel launched attacks on Iran. Pyrenees is the most expensive crude blend followed by Argus, according to Russell. Russian crude is commanding a premium over Brent despite sanctions.