Brent Crude Holds Massive Premium as Middle East Logistics Remain Frozen

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Freight and Insurance Costs

The cost of shipping crude has surged since the conflict began on February 28. Insurance premiums for any transit through the Gulf of Oman remain prohibitive, keeping Brent prices structurally high.

Global Inventory Hole

Analysts warn that several countries could face acute oil shortages as the final shipments that left the Gulf before the total blockade have now arrived at their destinations, with few replacements in sight.