Iranian crude oil prices have traded at a premium to Brent for the first time since 2022.

Golden Finance reports that on April 2, according to data from Argus Media, after the United States temporarily eased some oil sanctions against Iran, Iranian crude oil first showed a premium versus the global benchmark Brent crude since May 2022. On March 26, Iran’s main export-grade crude oil traded at a premium versus Brent of about $1 per barrel, whereas earlier this year under comprehensive sanctions it was discounted by roughly $10 per barrel. This shift indicates that Tehran is benefiting from its control of the Strait of Hormuz. With Brent crude holding at around $107 per barrel and global supply constrained, buyers are willing to pay a premium for crude oil that is still marketable. By blocking the free flow of Gulf producers’ cargo while allowing its own shipments to move, Iran has created transportation bottlenecks, driving up global oil prices and increasing the relative value of Iran’s light crude oil. Tanker tracking data shows that vessels associated with Iran are still transporting through strategic waterways and offloading from floating storage facilities.