Following the outbreak of war involving the US, Israel, and Iran, global oil prices have skyrocketed, with Dubai crude experiencing the most substantial increase among the three major oil benchmarks. Data from MarketWatch reveals that Dubai oil futures traded on the Chicago Mercantile Exchange rose from $68.4 per barrel on February 27, just before the outbreak of hostilities, to $134.07 on March 20, marking an increase of 96.0%. In contrast, West Texas Intermediate (WTI) rose by 46.7% from $67.02 to $98.32, while Brent crude increased by 54.8% from $72.48 to $112.19, indicating that the upsurge in Dubai crude is 1.8 to 2.1 times greater than its counterparts.

The spot price for Dubai crude has soared even higher, leaping from $71.24 per barrel on February 27 to $158.85 on March 20, representing a staggering increase of 123.0%, with a record peak of $166.8 reached on March 19. This discrepancy between swap futures prices and spot prices, where futures are lower, suggests that traders view the spot market as overextended. The sharp rise in Dubai's oil price can be attributed to significant transportation disruptions stemming from Iran's blockade of the Strait of Hormuz. Samsung Securities reported on March 17 that supply disruptions due to the blockage could amount to 15.87 million barrels per day.

As a result, countries in Asia, particularly South Korea and Japan, heavily reliant on Middle Eastern oil are now actively seeking alternative sources of oil. The Ministry of Trade, Industry and Energy in South Korea is looking for substitutes for Russian oil, which they halted imports for in April 2022. The widening price difference between Brent and WTI, which reached its highest since 2015 at $13.87 per barrel, illustrates the growing impact of Middle Eastern geopolitical tensions as countries maneuver to secure their energy needs amid this crisis.