Oil Markets War, Hormuz and the Fuel Price Shock
Mar 12, 2026
Laura Huchzermeyer, gasoline market reporter tracking West Coast pump-price risks. Janet McGurty, refining editor specializing in California refinery dynamics. Ben Peyton, analyst of diesel and jet flows and shipping effects. They discuss why refined fuels spiked more than crude. They unpack West Coast import vulnerabilities, pipeline options, insurance and shipping impacts, and refinery capacity limits.
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Refined Products Jump Harder Than Crude
- Refined products have spiked far more than crude following the Middle East strikes and Strait of Hormuz closure.
- Ben Peyton notes jet reached record highs in Europe and Singapore while Gulf Coast jet hit its highest since June 2022 due to lost Middle East supply.
Gulf Refineries Redirected To Serve Overseas
- U.S. Gulf Coast supply is being reallocated to international markets, creating unusual domestic price premiums.
- Ben Peyton points out Houston benchmarks rose above New York Harbor as refiners divert cargos to Europe amid desperate demand.
Insurance Risk Premiums Choke Product Flows
- Insurance and higher freight risk are removing liquidity and raising costs for refined product shipments.
- Ben Peyton explains risk premiums on tanker insurance spiked, denting trading activity and limiting cargo movement.