The conflict in West Asia has led to a significant disruption in oil supply, particularly due to the blockade of the Strait of Hormuz, a vital route for global oil and liquefied natural gas (LNG). While benchmark prices for Brent crude have fluctuated—peaking at about $119 per barrel—actual transaction prices in the physical market have reportedly reached as high as $150 per barrel. This discrepancy arises from the distinction between the paper market, which trades futures contracts, and the physical market, where immediate supply and demand dictate prices. During supply crises, such as the current situation, refiners are forced to pay higher prices to secure oil for their operations. The International Energy Agency (IEA) has noted that the closure of this critical waterway has resulted in the largest supply disruption in oil market history, with millions of barrels of oil daily taken off the market. As the situation continues, analysts warn that if the conflict persists without resolution, both physical and futures prices could surge, further widening the gap between the two markets.