Crude at $85 as US-Iran Tensions Threaten Hormuz Oil Flows

For Asian buyers, the risk is immediate. Japan, India, and South Korea combined import over 10 million barrels a day of crude from the Middle East. Most of it passes through Hormuz. Saudi Arabia and the UAE hold roughly 5 million barrels a day of spare capacity. Bringing those barrels to market would take at least two weeks, traders said.

The readthrough extends to refined products. Gasoline and diesel futures rose in sympathy, with ULSD touching a three-week high. Margins for Asian refiners could widen if crude supply tightens faster than product demand adjusts.

White House officials said Monday the US is prepared to tap the Strategic Petroleum Reserve if needed. Any release would be calibrated to the scale and duration of a disruption.

Brent crude settled at $85.07 a barrel, up 2.3%, according to exchange data.