Why oil prices aren’t what you think – and what it means for global supply

Since the start of the US-Israel war on Iran, oil prices have risen sharply, exceeding $103 a barrel after US President Donald Trump announced a naval blockade on Iran. The oil markets are divided into physical sales and futures contracts, with prices diverging due to a growing mismatch between supply perceptions and ground realities. Oil pricing is determined by spot markets for immediate delivery and futures contracts for future delivery.