S&P Global Platts has suspended its price assessments for refined oil products in the Middle East that transit the Strait of Hormuz, citing shipping disruptions following reported Israeli and U.S. actions against Iran.
The agency announced the suspension of bids and offers related to its market-on-close (MOC) assessment process for refined products, effective March 2, until further notice. The review also extends to the mechanism for pricing Middle East crude oil, with a decision expected at 06:00 GMT.
The company, a key provider of benchmarks for global oil and fuel markets, stated the review was prompted by market participants reporting that major shipping companies had ceased transiting the Strait of Hormuz due to increasing safety concerns.
The Strait of Hormuz is a vital waterway connecting the Gulf to the Arabian Sea, facilitating approximately 20% of global oil demand from Saudi Arabia, the United Arab Emirates, Iraq, Iran, and Kuwait. It also handles tankers carrying diesel, jet fuel, gasoline, and other refined products.
Platts' daily assessment of Dubai crude oil prices serves as a key benchmark for oil companies and traders in pricing millions of barrels of Middle Eastern crude and its derivatives, making any adjustment to the assessment mechanism a direct influence on markets.
The move comes amid heightened volatility in energy markets, fueled by escalating geopolitical risks and rising oil prices, as investors monitor the impact of continued tensions on global supplies and maritime shipping routes.