European and Asian refiners have been racing to lock down oil cargoes, driving North Sea spot prices to record levels. Forties Blend surged to almost $147 a barrel on Thursday, eclipsing the peaks seen before the 2008 financial crisis, LSEG data show. Barrels from the region trade well above the $97 Brent benchmark for June delivery, underscoring market anxiety over supply shortages amid escalating tensions.

Traders reported that the scramble crippled a core hedging tool: Brent contracts for difference stopped trading after prices breached the $30‑a‑barrel threshold set by ICE, forcing some deals onto over‑the‑counter markets, for market participants seeking price protection. The interruption highlights how tightly packed logistics and geopolitical risk are compressing both physical and futures markets.

Compounding the squeeze, Saudi Arabia confirmed a loss of 600,000 barrels per day after attacks damaged the Khurais and Manifa fields and the East‑West pipeline, shaving roughly 5 % off its normal output. With the Strait of Hormuz still partially shut, analysts warn physical oil supplies will stay tight for weeks, even if futures prices ease. The ongoing price spike could pressure downstream margins worldwide.