The derivative markets for high-sulfur fuel oil and very-low-sulfur fuel oil rallied Monday morning following weekend strikes by the U.S. and Israel on targets in Iran as traders moved quickly to price in geopolitical risk.
HSFO swaps jumped to $63.90/bbl, up from $58.15/bbl Friday morning, while VLSFO climbed to $519/mt from $484.75/mt over the same period. The gains reflected a swift repricing of supply risk tied to the region, particularly as concerns mount over potential disruptions to flows through the Strait of Hormuz.
Near-term prices appeared to rise along with overall values, possibly as some traders point to short covering and selective new buying interest. HSFO could have seen additional support on concerns that heavier crude supplies might tighten if tensions escalate, while VLSFO seemed to move in line with the broader oil market as participants reconsider short-term supply and demand.
Even with the increase, trading activity appears measured. Market participants are still assessing whether the situation might disrupt fuel shipments in a meaningful way or remain limited, with no clear impact on physical supply so far.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
Reporting by Erik Papke, epapke@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
March 02, 2026 12:57 ET (17:57 GMT)
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