Physical Oil Prices Near $110 as Geopolitical Tensions Disrupt Global Supply

Key Facts

Amid escalating geopolitical tensions threatening the stability of global energy flows, physical oil markets have experienced a significant price surge. According to Reuters reports, prices for certain physical oil grades jumped to near the $110 per barrel mark. This spike is directly attributed to supply disruptions caused by ongoing conflicts in Iran and Ukraine, which have constrained the availability of crude for immediate delivery.

The surge in physical market premiums reflects growing anxiety among buyers, as data indicates acute supply shortages. Such jumps in physical pricing typically serve as a precursor to higher futures prices across global benchmarks, driven by the heightened geopolitical risk profile currently impacting the supply side of the equation.

Regarding energy sector data, the latest American Petroleum Institute (API) figures showed a crude oil stock change of 2.603 million barrels, contrary to expectations of a drawdown. Additionally, the EIA Weekly Petroleum Report as of July 22, 2026, confirmed an increase in weekly stocks by 2.011 million barrels, setting a complex backdrop as markets weigh rising inventories against the severe geopolitical supply risks.