Vincent Wu
Research Associate, Flux
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Brent rises as Iran seeks to ban US and Israel from transiting Strait
Brent supported above $83/bbl; Tensions rise as Iran proposes legislation that bans US and Israel from transiting the Strait
Published: August 7, 2026
Written by:
Vincent Wu
The Oct’26 Brent crude futures was supported above the $83/bbl level on Friday morning, briefly reaching highs of $84.40/bbl.
Brent Futures Flat Price
Tensions have risen as Iran’s parliament discussed a bill to tighten Iran’s control of the Strait, where under the proposed legislation, hostile countries such as the US and Israel will be banned from transiting, imposing fines of up to 20% of the ship’s cargo value if found violating this. Shipping traffic through the Strait of Hormuz has dwindled to 33 vessels from Monday to Thursday this week, data showed, versus 50 in the week-ago period, as markets watched talks between Iran and Oman for signs of progress in reopening the key waterway. Brazilian NOC Petrobras reported a rise of 96% in Q2 net profit to 52.4 billion reais, the third highest in its history, as surging oil prices due to the US-Iran conflict boosted results. US producer Occidental Petroleum said on Thursday it expects flat production and capital spending in 2027, adding that it would continue to prioritise debt-reduction efforts. Venezuela’s crude production reached 1.22mb/d in July, an increase of 11% y/y but falling 3% m/m from June. Finally, the Oct/Nov’26 and Oct/Apr’27 Brent futures spreads are at $2.25/bbl and $7.78/bbl respectively.
Prices accurate at the close of the window on the date of publication. For live prices, see Flux Terminal or the Flux CFDs Trading Platform.
Fuel Oil
380 spreads traded higher this morning supported by stronger crude and continued strength in the physical, Sep/Oct traded up to $27.00/mt while the balmo spread traded up as high as $38.75/mt in the window. 380 cracks saw some buying in the prompt due to MOC buying however the move upwards was capped from market makers scale back selling on screen, closing at -$2.25/bbl.
Sing 0.5 came in much better bid this morning, on the back of physical cargoes getting lifted and Asian tradehouses buying the balmo spread. Sep/oct traded up to $39.50/mt from last nights close of $37.50/mt, this strength continued trading up to $40.50/mt post window. Sing 0.5 crack traded up 70c to $20.50/bbl supported by flat price buying from a tradehouse and major , the Sep E/W was therefore implied higher at $78.50/mt.
Prices accurate at the close of the window on the date of publication. For live prices, see Flux Terminal or the Flux CFDs Trading Platform.
Distillates
This morning in distillates, Sing gasoil spreads saw selling in the front, with Sep/Oct trading from $5.50 down to $5.10/bbl post window, while front EW buying stepped up from -$70.5 to -$68.5/mt. Regrade was quiet, with Cal'27 trading at $1.6/bbl.
Prompt ICE gasoil spreads weakened, with Sep/Dec trading down to $140.25/mt, while cracks rallied initially to $64/bbl before selling back down to $63.5/bbl. Heating oil spreads weakened, while HOGOs were quiet, with the Sep HOGO swap at 27.5c/gal.
Prices accurate at the close of the window on the date of publication. For live prices, see Flux Terminal or the Flux CFDs Trading Platform.
Gasoline
Quiet morning in gasoline. MOC touch better bid with 92 spreads getting lifted by real in the morning with scale back selling interest, seeing Sep/Oct getting lifted $3.6/bbl – trading up to $3.75/bbl end of window. Some real buyer of Nov/Dec at 1.9/bbl first thing. EW touch stronger than yesterdays close with smalls selling interest at -$12/bbl.
Prices accurate at the close of the window on the date of publication. For live prices, see Flux Terminal or the Flux CFDs Trading Platform.
Naphtha
MOPJ MOC better bid this morning trading up to +5c. Saw real sellside on front spreads during the window with Sep/Oct and Oct/Nov trading $25/mt and $23/mt respectively. Scaleback MOPJ crack selling in the window as well from $0.75/bbl to $1/bbl.
Prices accurate at the close of the window on the date of publication. For live prices, see Flux Terminal or the Flux CFDs Trading Platform.
NGLs
This morning in FEI flat price was bid with Sep trading up to $665/mt before a bid got hit in the physical window and it traded down to $660/mt end window. Front spread initially rallied with flat price with Sep/Oct trading up to $26.5/mt before coming off to $25/mt end window and Bal Aug/Sep trading up to $40/mt. FEI/CP was bid by market makers trading up from $85/mt to $87/mt as FEI initially rallied. The arb went bid end window as FEI was coming off trading -$295/mt.
Prices accurate at the close of the window on the date of publication. For live prices, see Flux Terminal or the Flux CFDs Trading Platform.
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