Refineries are scrambling to purchase crude oil from other regions to offset the loss of Middle Eastern supply, paying increasingly high premiums, with signs of severe disruption in global markets due to the Iran conflict becoming more apparent. Outside well-known crude futures markets like Brent and West Texas Intermediate, there are hundreds of lesser-known crude varieties whose prices typically trade within $1–2 above or below international benchmarks. However, these spreads are rapidly widening to premiums of $10 per barrel or more, as refiners—particularly in Asia—rush to secure alternative supplies. Spot crude premiums are significant because they reflect supply-demand balance, influence refiners' purchasing decisions, and drive trade flows. These prices indicate that another bottleneck has emerged in the global energy system following the effective closure of the Strait of Hormuz, a critical oil transit route, and Iran's attacks on neighboring infrastructure. Traders note that in Southeast Asia, smaller-output crudes such as Malaysia’s Labuan, Indonesia’s Minas, and Vietnam’s Bach Ho are trading at premiums of over $10 per barrel against dated Brent. In normal times, these crudes typically trade within a few dollars of the benchmark. Meanwhile, U.S. crude delivered to Asia on a cost, insurance, and freight basis is trading at premiums of $12–15 per barrel against dated Brent, levels not seen in years. With refined product prices rising faster than crude, refiners continue to achieve strong processing margins as long as they can secure supply. "The entire refining sector has likely been somewhat hesitant over the past few weeks as the situation evolved," said Neil Crosby, head of research at Sparta Commodities. "But it’s becoming clearer now that the Strait of Hormuz won’t reopen anytime soon, and with crack spreads incredibly high, refiners can start buying crude aggressively."