John Driscoll stated that physical oil prices are much higher than futures benchmarks, with WTI at a $4 premium to Brent and Saudis raising official selling prices to an all-time high, reflecting tight physical supply due to Strait of Hormuz closures. The disconnect between physical and futures markets indicates mispricing; with ~10 million barrels per day of supply locked out and no quick alternatives, prices should adjust upward as refiners face shortages and potential force majeure. WATCH due to impending supply shock and market underreaction, with prices poised to rise if disruptions persist. Diplomatic resolution reopening the Strait of Hormuz or a swift end to the conflict could alleviate supply pressures.