Physical crude oil prices in the Middle East, Europe, and Africa climbed to two-month highs this week, with some cargoes approaching $110 a barrel.
The spike reflects intensifying supply constraints as buyers compete for available inventory amid ongoing conflicts in Iran and Ukraine.
The surge in spot premiums underscores the growing friction in global energy flows.
While benchmark futures have already priced in significant risk, the physical market is now reflecting the immediate scarcity.
Buyers are facing higher costs and tighter availability, particularly for cargoes destined for European and African refineries that rely on Middle Eastern supply.
This development follows a period of heightened volatility in energy markets.