Mar. 6 at 8:49 PM
Oil prices surged past
$90 a barrel Friday as the escalating conflict involving Iran disrupted global supply. Brent crude settled at
$92.69, up 27% for the week, while WTI closed at
$90.90, gaining nearly 36%—their biggest weekly increases since the start of the Russia-Ukraine war in 2022.
The rally intensified after Kuwait reduced oil production due to storage constraints caused by Iran effectively shutting the Strait of Hormuz, a key shipping route for Persian Gulf crude. Other regional producers are also facing limits: Iraq has already cut output sharply, while Saudi Arabia and the U.A.E. are nearing storage capacity.
Energy officials warn the situation could worsen. Qatar’s energy minister said continued conflict could halt Gulf energy production within days, potentially pushing oil prices toward
$150 a barrel. Analysts also say prices could surpass
$100 if tanker traffic through the Strait isn’t restored soon.
$XOM $CVX $USO