Finance
Asia's jet fuel, diesel cash premiums hit multi-year highs on Mideast concerns
Published by Global Banking & Finance Review®
Posted on March 2, 2026
3 min readLast updated: March 2, 2026
Quick Summary
Asia’s jet fuel and diesel cash premiums surged to multi-year highs—around $4 for jet fuel and $4.25 for diesel—as markets brace for supply disruptions amid the escalating 2026 Strait of Hormuz crisis, pushing refining margins to near four‑month peaks.
Asia's jet fuel, diesel cash premiums hit multi-year highs on Mideast concerns
By Trixie Yap
Market Reactions to Middle East Conflict
March 2 (Reuters) - Asia's jet fuel and diesel cash differentials soared to multi-year highs on Monday, as the markets priced in the risks of supply disruption from a widening conflict in the Middle East, multiple regional trade sources said.
Jet Fuel and Diesel Premiums Surge
Jet fuel cash differentials ended the trading session at a premium of $4 a barrel, LSEG pricing data showed, more than $2 higher than the previous close and at levels last seen in September 2022.
Diesel cash differentials were at premiums of around $4.25 a barrel, levels last hit in November 2022, the data showed.
Refining Margins Reach New Highs
Refining margins for both 10ppm-sulphur gasoil and jet fuel edged up to around $30 a barrel or more, at their highest in nearly four months.
Supply Disruption Concerns
The biggest market driver was concern about the disruption of middle distillates supplies loading from the Strait of Hormuz, with possible knock-on effects for demand for Asia-loading cargoes, the trade sources said.
Europe's Potential Shift to Asian Supplies
EUROPE MAY SEEK ASIAN SUPPLIES
In particular, they said Europe may need to seek replacement supplies from Asia if the conflict and disruption are prolonged.
European Diesel Margins Widen
Benchmark European diesel refining margins rose about 26% on Monday, to their widest since November 20.
Impact of Facility Closures
Apart from the general risk of disruption, concern was heightened by the closure of Saudi Aramco's 550,000 barrel-per-day Ras Tanura refinery on the kingdom's Gulf coast after a drone strike. QatarEnergy also said it will stop production of liquefied natural gas and related products.
Trade Flows and Data
Nearly 600,000 metric tons of diesel flows per month from exporters in the Strait of Hormuz went to Europe last year, Kpler shiptracking data showed. Jet fuel flows on this route averaged 1.1 million tons per month.
Around 40% of jet fuel exported from refiners via the Strait of Hormuz were bound for Europe last year, the data added.
Expert Insights and Future Outlook
"For jet fuel, if flows from Strait of Hormuz are reduced, Europe will have to pull more from the SG straits and NE Asia," Vortexa's head of APAC analysis Ivan Mathews said, adding that all these factors will tighten Asia's jet fuel supply. The situation could be exacerbated by the refinery maintenance season in Asia starting from the second quarter, he said.
He also said prices in Europe would have to "rise more", without giving specific levels, compared with Asia for the east-west arbitrage margins to be favourable and overcome freight costs for sellers to send jet fuel barrels from Asia to Europe.
Shipping Activity
The Velos Emerald, Eagle Lyon and new-built Oasis were chartered in the last three weeks to ship about 300,000 tons of jet fuel from northeast Asia to northwest Europe for March arrival, two shipping sources said on condition of anonymity.
(Reporting by Trixie Yap and Ahmad Ghaddar; Editing by Kirsten Donovan and Barbara Lewis)
Key Takeaways
- •Jet fuel cash premiums in Asia jumped by over $2 to reach $4/barrel, marking the highest level since September 2022, per LSEG data.
- •Diesel cash differentials climbed to approximately $4.25/barrel, matching levels not seen since November 2022.
- •Refining margins for 10 ppm-sulphur gasoil and jet fuel hit around $30/barrel, near four-month highs, buoyed by fears of transport disruptions through the Strait of Hormuz amid the widening Middle East conflict.
- •The ongoing 2026 Strait of Hormuz crisis, triggered by US–Israel strikes on Iran on February 28, has effectively halted tankers in the chokepoint, raising war-risk insurance and driving energy market volatility.
- •Asia may emerge as an alternative supplier—European buyers traditionally sourcing nearly 600,000 tons/month of diesel and 1.1 million tons/month of jet fuel via the Hormuz route could increasingly look east.
Frequently Asked Questions about Asia's jet fuel, diesel cash premiums hit multi-year highs on Mideast concerns
1Why did Asia's jet fuel and diesel cash premiums reach multi-year highs?
Premiums surged due to concerns over possible supply disruptions caused by the widening conflict in the Middle East, particularly near the Strait of Hormuz.
2How much did jet fuel cash differentials increase?
Jet fuel cash differentials rose to a premium of $4 a barrel, over $2 higher than the previous close and at their highest since September 2022.
3What impact could prolonged conflict in the Middle East have on fuel exports?
Prolonged conflict and disruption may push Europe to seek replacement jet fuel and diesel supplies from Asia, impacting regional trade flows.
4What were the recent refining margins for jet fuel and diesel in Asia?
Refining margins for both 10ppm-sulphur gasoil and jet fuel edged up to around $30 a barrel, close to four-month highs.
5How significant is the Strait of Hormuz for jet fuel and diesel exports?
Last year, nearly 600,000 tons of diesel and 1.1 million tons of jet fuel from the Strait of Hormuz were exported to Europe, accounting for about 40% of jet fuel exports.
