Crude that must pass through the Strait of Hormuz is selling at huge discounts while oil loaded elsewhere fetches record prices — a split that shapes what the world, including Ghana, pays for fuel.
The global oil market has effectively split into two. Crude that has to sail through the Strait of Hormuz is being sold at steep discounts, while barrels loaded outside the chokepoint are commanding some of the highest prices on record.
Brent crude, the benchmark most often quoted in international pricing, is trading above $107 a barrel. West Texas Intermediate (WTI), the main United States benchmark, is close to $103. That is a sharp turnaround from late June, when prices fell after the United States and Iran agreed to a 60-day halt in hostilities in the Persian Gulf.
Why the gap is so wide
The Strait of Hormuz is the narrow sea passage at the mouth of the Persian Gulf through which a large share of the world's oil exports must travel. With the war involving the United States, Israel and Iran continuing, tankers face the risk of drone and missile attack, and insurance and shipping costs have climbed.
The result is a discount on oil trapped inside the Gulf. Iraq, the second-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), has been among the worst hit. Its Basrah Medium grade for next month's loading is being offered at a discount of $43.06 a barrel to the regional Murban benchmark, according to Argus data cited by Reuters columnist Clyde Russell.
Murban, the flagship blend of Abu Dhabi's national oil company ADNOC, is trading above $127 a barrel. Crucially, Murban loads at Fujairah, a port that sits just outside the chokepoint, while most Iraqi crude loads inside the Gulf.
Iraq has already had to shut in wells this year and offer heavy discounts to attract buyers, even though Iran was reported to have exempted Iraqi cargoes from attack.
Traffic down, prices up elsewhere
Ship-tracking figures show traffic through Hormuz remains thin. Maritime data firm Windward recorded just one outbound tanker on 14 September, with two others entering the waterway — all three carrying liquefied petroleum gas rather than crude.
Once cargoes clear the strait, the discount narrows sharply, as buyers compete for physical barrels. That, Russell noted, suggests demand for crude has held up despite much higher prices.
Oil produced far from the Gulf is the clear winner. Australia's medium sweet Pyrenees blend traded at $138.04 a barrel last Friday, against $70.59 on 27 February, just before the attacks on Iran began. Russell describes it as the most expensive crude grade tracked by Argus.
Even sanctioned Russian oil is fetching a premium. The ESPO blend, loaded in Russia's Far East, traded up to $10 above Brent this month as Chinese independent refiners sought replacements for blocked Iranian barrels. Indian refiners have also increased purchases, lifting ESPO exports by 6 percent in the first half of the year.
What next
There is no sign of the pressure easing. Saudi Arabia is working to repair its East-West pipeline, an alternative route that bypasses Hormuz, while Yemen's Houthi forces have struck further targets in the kingdom. If the fighting deepens, the gap between Hormuz-bound crude and everything else could widen further.
Reported first by The Ghana Report on 2026-09-17. This article was written for our readers based on that report. Follow the link for the original coverage.
