China's yuan-priced crude oil futures surged to an all-time high, reaching 929.4 yuan ($138.50) a barrel on the Shanghai International Energy Exchange. The peak marks the highest level since the contract was first listed in 2018.

The rally was driven by a Saudi pipeline shutdown that disrupted global supplies, alongside heightened Middle East instability with no resolution in sight between the US and Iran. Global benchmarks like Brent also climbed to multi-month highs.

Chinese refiners, as the marginal buyers, purchased crude at elevated premiums and freight rates, keeping Shanghai crude strong versus overseas markers. Freight costs and delivery of medium-sour crudes to local storage further underpinned prices. Researcher Chaos Ternary Futures Co. noted only a recession or geopolitical de-escalation could cool oil prices.

Oman and Murban futures also traded above $126 a barrel, reflecting similar quality benchmarks.