Oil prices have dominated headlines and policy discussions since the start of the US-Israel war on Iran.In the six weeks since the United States and Israel launched strikes on Iran, crude prices have risen sharply, driving up fuel costs and placing strain on households across the globe.Recommended Stories list of 4 itemsend of listOn Sunday, the main international benchmark for prices surged more than 8 percent to top $103 a barrel after US President Donald Trump announced plans to impose a naval blockade on Iran.In fact, the price of oil is more complicated than any one figure and depends on where you look.The oil trade can be broadly divided into two distinct markets: physical sales and contracts for future oil deliveries, known as futures.Since the start of the war and Iran’s effective blockade of the Strait of Hormuz, prices in these markets have diverged substantially – reflecting what analysts say is a growing mismatch between perceptions of supply and the reality on the ground.Here is all you need to know about the growing split in the physical and on-paper oil markets:What is the difference between physical and futures oil prices?Oil is priced differently depending on whether it is bought on the spot for prompt delivery or months in advance via a futures contract.The principal benchmark for spot prices is Dated Brent, a basket of four grades of oil produced in the North Sea and one produced in the US.It reflects the per-barrel price of oil scheduled for shipment in the next 10 to 30 days.“If someone wants oil for immediate delivery – rather than in …
