In today's climate, the margin for error in global energy procurement has effectively vanished. As of June 2026, the escalation of the Iran conflict has transitioned from a localized geopolitical risk into a full-scale global supply shock. With the Strait of Hormuz facing unprecedented restrictions and Brent crude volatility reaching levels not seen in decades, the "business as usual" approach to fuel sourcing is a recipe for operational failure.
For the modern fuel buyer, navigating this landscape requires more than just capital; it demands energy resilience and a sophisticated understanding of the logistics bottlenecks that define the current market. At Van Dyke Energy, we are seeing a recurring pattern of strategic oversights that leave organizations exposed to dry tanks and inflated premiums.
Here are the seven critical mistakes currently being made in the procurement of EN590, Jet Fuel A1, and D6, and the authoritative steps required to fix them.
1. Over-Reliance on the Spot Market
The most pervasive mistake in the 2026 market is treating this supply crisis as a temporary "spike." Many buyers continue to rely on spot purchases, hoping for a price correction that remains elusive. In a market where nearly 20% of global oil flow is compromised, the spot market becomes shallow and prohibitively expensive.
The Fix: You must shift toward structured long-term offtake agreements. Transitioning at least 60-70% of your requirement to term contracts ensures priority allocation. At Van Dyke Energy, we leverage our vetted refinery relationships to secure volume commitments that bypass the "bidding wars" seen on the open market.
2. Ignoring "Shadow Market" Risks and Unvetted Intermediaries
Regional instability always invites bad actors. We are seeing a surge in "ghost" suppliers offering Jet Fuel A1 at significant discounts, often linked to sanctioned origins or non-existent allocations. Engaging with these entities doesn't just risk your capital: it risks your entire corporate standing through compliance violations.
The Fix: Rigorous due diligence is non-negotiable. You should only work with mandates and providers who can offer SGS-verified proof of product (POP) and have a documented history of successful FOB/CIF deliveries. Our network at Van Dyke Energy is built on a foundation of verified sellers, ensuring that every barrel of EN590 is fully compliant and legally exportable.
3. Geographic Supply Concentration (The Hormuz Trap)
If your supply chain is exclusively dependent on Middle Eastern refineries, you are effectively a hostage to the Strait of Hormuz. With transit times delayed and insurance premiums skyrocketing, concentrated exposure is a single strike away from a total shutdown.
The Fix: Diversification is the only path to energy resilience. You need to look toward Rotterdam, Houston, and Singapore as alternative hubs. Van Dyke Energy specializes in moving refined fuels worldwide, utilizing our logistics expertise to source from non-impacted regions and ensuring that your supply chain remains operational regardless of regional flares.
4. Underestimating the "Landed Cost" (Freight and War Risk)
A common error is focusing solely on the FOB (Free on Board) price. In the current conflict zone, the base commodity price is often the least volatile component. War-risk premiums, increased freight rates, and demurrage due to port congestion can easily add 15-20% to your final landed cost.
The Fix: Always calculate procurement on a CIF (Cost, Insurance, and Freight) basis with integrated risk assessments. You must account for the extended voyage times required to bypass high-risk zones.
5. Weak Documentation and POP Verification Protocols
In a high-stakes environment, many buyers accept "soft" proof of product or partial documentation. This is where most fraudulent transactions begin. In today's market, if the paperwork isn't airtight, the product likely doesn't exist.
The Fix: Implement a "Standard Operating Procedure" (SOP) that requires full Proof of Product (POP) before any financial commitment. This includes recent SGS reports, tank storage receipts (TSR), and injection reports. At Van Dyke Energy, we maintain transparency through every step of the transaction process, ensuring that our buyers have the clarity they need to move forward with confidence.
6. Failure to Account for Refined Product Bottlenecks
While crude oil gets the headlines, the real crisis for the end-user is in refined products. The conflict has disrupted key refining hubs, leading to a disconnect between crude availability and the supply of EN590 diesel and Jet Fuel A1.
The Fix: Secure your position in the "refining queue." By establishing direct relationships with refineries or their authorized mandates, you bypass the secondary market bottlenecks. We focus specifically on these refined fuels, delivering structured deals that meet strict performance and delivery standards even when the broader market is in disarray.
7. Neglecting Sanctions Screening and Compliance
As the Iran conflict evolves, so do the sanctions lists. A supplier that was "safe" last month may be blacklisted today. Many procurement teams lack the real-time intelligence to stay ahead of these regulatory shifts.
The Fix: Compliance is not a one-time check; it is an ongoing process. Your procurement strategy must include continuous screening against OFAC and other international sanctions lists. Van Dyke Energy integrates rigorous compliance protocols into every deal, shielding our clients from legal and reputational risks.
Authoritative Conclusions on the Current Crisis
The Iran conflict has fundamentally rewired the global energy market. The days of low-volatility, "set-it-and-forget-it" procurement are over. To maintain operational continuity, you must adopt a proactive, risk-aware strategy that prioritizes vetted supply chains and logistical agility.
Energy resilience is no longer a corporate buzzword: it is a survival requirement. By fixing these seven mistakes, you position your organization to thrive while competitors struggle with dry tanks and broken contracts.
For buyers requiring immediate, compliant supply of EN590, Jet Fuel A1, or D6, the team at Van Dyke Energy provides the speed and execution certainty required in today's volatile market.
Mark Van Dyke
Sales Director, VanDykeEnergy.com
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