Oil Prices Mislead: Physical Market Soars Amid Iran War, Futures Lag

• The Iran war creates a growing gap between oil futures and physical market prices, with Brent jumping over 50% to $112 a barrel.
• Physical barrel costs are surging even more, impacting consumer fuels like gasoline, diesel, and jet fuel, with jet fuel exceeding $200 a barrel.
• Aggressive US attempts, including emergency supply releases, are partly masking the true inflationary hit on the global economy.
• Experts warn futures could surpass 2008 record highs of $147.50 if the conflict continues, driven by the biggest-ever oil supply disruption.
• Signs of stress include rising shipping surcharges, high retail fuel prices, and airlines canceling flights due to soaring jet fuel costs.