Asia and Europe are witnessing a surge in demand for American crude oil, one of the earliest signs of growing anxiety over petroleum supply security amid rising geopolitical flashpoints.

Iran-backed Houthi rebels have attacked two Saudi oil tankers in the Red Sea, introducing fresh instability into the Iranian conflict and pushing international benchmark crude prices past $100 per barrel. Meanwhile, Kazakhstan has cut oil output following Ukrainian drone strikes on Black Sea shipping, prompting buyers to seek alternative grades, including supply from the Permian Basin.

On the domestic front in the U.S., the situation is equally dire: a full resumption of rapid export growth for American crude would ultimately raise fuel costs for consumers and intensify inflation pressures ahead of the U.S. midterm elections, according to traders.

On Thursday, September-loading WTI crude along the U.S. Gulf Coast traded at a premium of roughly $5 per barrel over the global benchmark price. Just one day earlier, that spread was a discount of $2 per barrel, traders reported. Some Asian buyers are taking unusual steps, rushing to secure spot cargoes due for shipment within weeks. Others are banking on tanker vessels slipping through dangerous areas around the Strait of Hormuz and the Red Sea by turning off their Automatic Identification System (AIS) transponders.

In European markets, Exxon Mobil and oil trader Petroineos each withdrew their premium offers of $6.75 and $6.55 per barrel, respectively, for WTI Midland crude—a classic signal of heightened price volatility. Since late February, when the U.S. and Israel sparked the Iran conflict, American crude has been in strong demand due to its distance from the conflict zones.

Data from Kpler Ltd shows that U.S. oil exports surged to a record high of 5.66 million barrels per day in May, underscoring its role as the "supplier of last resort." More recently, shipments have eased as the Strait of Hormuz briefly reopened, allowing tankers stranded in the Persian Gulf to sail to Europe and Asia.

Sparta Commodities noted that Kazakhstan’s production cuts, which traditionally supply refineries in the Mediterranean and Northwestern Europe, have made WTI more competitive in those regions. However, this supply disruption is likely temporary, suggesting the demand boost for American crude may not be sustained.

As demand picks up, U.S. crude inventories continue to shrink. Commercial crude oil stocks have fallen to near eight-year lows, while emergency reserves have dropped to their lowest level since 1983.