Crude oil prices have surged, recording the largest weekly increase in the history of futures contracts, as the war in the Middle East causes massive disruptions to the global energy supply.
The international benchmark Brent rose by 8.52% or $7.28, reaching $92.69 per barrel. U.S. crude West Texas Intermediate (WTI) jumped on Friday by 12.21% or $9.89, closing at $90.90 per barrel.
On a weekly basis, U.S. crude posted a rise of 35.63%, the largest ever since the start of trading in the relevant futures contracts in 1983. Brent gained about 28%, marking its biggest weekly increase since April 2020.
The price surge is attributed to the escalation of the war between the United States and Iran, which has already caused serious disruptions to global energy flows. The situation has led to an almost complete paralysis of shipping through the Strait of Hormuz, one of the most important oil transport passages in the world.
U.S. President Donald Trump called on Friday for Iran’s “unconditional surrender,” intensifying concerns about a prolonged war that could trigger major upheavals in global oil and natural gas markets.
Qatar’s Energy Minister Saad al-Kaabi warned that oil prices could surge to as much as $150 per barrel in the coming weeks if tankers continue to be unable to pass through the Strait of Hormuz.
As he stressed, such a development could “collapse the world’s economies.”
He also warned that if the crisis continues, most Gulf countries will be forced to declare a state of “force majeure” on their energy exports.
“Everyone who has not yet declared ‘force majeure’ will probably do so in the coming days if this situation continues,” he said, noting that oil exporters in the region are facing serious legal and commercial pressures.
At the same time, the Trump administration announced a $20 billion reinsurance program for oil tankers operating in the Persian Gulf, in an effort to restore navigation in the region. However, the measure failed to calm oil markets.
Disruptions in energy production are already becoming evident. According to Iraqi officials, Iraq has halted production of about 1.5 million barrels per day. Meanwhile, Kuwait has also begun reducing production as available storage capacity is running out.
Analysts estimate that the situation could worsen further if passage through the Strait of Hormuz is not restored soon. Natasha Kaneva, head of global commodities research at JPMorgan, noted that the market is now shifting from pricing geopolitical risk to dealing with real supply disruptions.
As she wrote in a briefing to the bank’s clients, production cuts could reach as much as 6 million barrels per day by the end of next week if the critical maritime passage remains closed.
JPMorgan also estimates that the United Arab Emirates will begin facing supply constraints in the coming days.
The consequences of the crisis are already being felt by consumers. The average price of regular gasoline in the United States rose by nearly 27 cents in one week, reaching $3.25 per gallon.
The war between the United States and Iran entered its seventh day on Friday. At a press conference on Thursday, U.S. Defense Secretary Pete Hegseth said that the United States “has just begun to fight.”
“Iran hopes that we cannot sustain this effort, which is a serious miscalculation,” he said.
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