Oil prices posted one of the most dramatic surges ever recorded this past week, climbing sharply after the United States launched strikes on Iran and the conflict spread across the Middle East, threatening global energy supplies, CNBC reports.
U.S. crude oil finished Friday at $90.90 per barrel, while the global benchmark Brent crude settled at $92.69, capping a week of extraordinary gains in energy markets.
For the week, West Texas Intermediate crude jumped more than 35%, marking the largest weekly increase in WTI crude oil futures trading since records began in 1983. Brent crude also surged, rising roughly 28% over the same period.
The spike reflects growing fears that the expanding war between the United States and Iran could severely disrupt oil production and shipping throughout the Persian Gulf, a region responsible for a significant share of the world’s energy exports.
Markets reacted swiftly after President Donald Trump escalated pressure on Tehran this week, declaring on social media that there would be no agreement with Iran short of “unconditional surrender.”
Investors increasingly believe the conflict could cause cascading disruptions across the global oil supply chain, particularly if tanker traffic through the Strait of Hormuz—one of the world’s most important oil shipping routes—remains blocked or restricted.
The Trump administration attempted to stabilize the situation Friday by announcing a $20 billion reinsurance program for oil tankers operating in the Persian Gulf, aimed at helping shipping companies secure coverage and keep vessels moving despite heightened wartime risks.
But the move did little to calm markets, which remain focused on the potential for major supply disruptions.
Energy ministers and analysts warn that the consequences could be severe if the conflict continues to escalate.
Qatar’s energy minister, Saad al-Kaabi, warned in an interview with The Financial Times that oil prices could climb as high as $150 per barrel if tankers are unable to move through the Strait of Hormuz in the coming weeks.
Such a surge could “bring down the economies of the world,” he said, underscoring the stakes for global energy markets.
The disruptions are already beginning to affect production in parts of the Middle East.
Iraq has shut down roughly 1.5 million barrels per day of oil output, according to Iraqi officials cited in reports earlier this week.
Meanwhile, Kuwait has started cutting production at some facilities after running into storage constraints, people familiar with the situation told The Wall Street Journal.
Analysts say these developments suggest that markets are moving beyond simple geopolitical fears and beginning to confront actual operational disruptions.
“The market is shifting from pricing pure geopolitical risk to grappling with tangible operational disruption,” JPMorgan commodities strategist Natasha Kaneva wrote in a note to clients.
According to JPMorgan estimates, production cuts across the region could approach 6 million barrels per day by the end of next week if shipping through the Strait of Hormuz does not resume.
That would represent a major shock to global oil markets, which are already tightly balanced between supply and demand.
The surge in crude prices is already filtering through to consumers.
The average U.S. price for regular gasoline jumped nearly 27 cents in the past week to $3.32 per gallon Friday, according to data from AAA, raising concerns that the energy spike could soon begin affecting inflation and economic growth.
Financial analysts warn that gasoline prices approaching $4 per gallon could become a tipping point for the U.S. economy, potentially weighing on consumer spending and broader economic activity.
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