Oil buyers are scrambling to replace supplies from the Gulf, causing price leaps for grades around the world from Norway to Kazakhstan. The closure of the Strait of Hormuz due to the war in the Middle East has severed about a fifth of the world's oil production from global markets, boosting demand for grades of crude with similar characteristics to those produced in the Gulf.

Oil traded in Oman has soared to a record of more than $150 a barrel, with prices reaching nearly $154 on Tuesday. This surge is driven by intense competition for the small volumes still leaving the Middle East through ports outside the Strait of Hormuz. The growing disruption to supplies has driven a number of regional price benchmarks to all-time highs, even as global marker Brent has fallen back to just above $100 a barrel.

Demand for grades of oil with similar characteristics to those produced in the Gulf has surged as refiners seek substitutes for Middle Eastern barrels. Prices for some oil grades produced in Norway, Algeria, Libya and Kazakhstan are at record highs relative to North Sea dated crude. The cost of crude for Asian refineries has 'roughly doubled' since before the war, according to Philip Jones-Lux, senior analyst at Sparta Commodities.