Oil Surges Past $90 as Iran War Rattles Global Markets

Oil is suddenly looking a lot more expensive—and investors are taking notice. US crude jumped nearly 9% Friday to top $88 a barrel, while Brent crude sailed past $90, putting both on course for their steepest weekly gains since early 2020 as the conflict involving Iran rattles global energy markets. The price shock comes amid mounting concern that fighting could choke off supplies from the Middle East, reports NBC News.

Kuwait has started trimming output due to storage limits, reports the Wall Street Journal, and Qatar's state energy firm has already scaled back production of liquefied natural gas. Hundreds of oil and LNG tankers are reportedly stalled near the Strait of Hormuz, a narrow passage through which more than 20% of the world's oil normally passes. JPMorgan analysts say the "market is shifting from pricing pure geopolitical risk to grappling with tangible operational disruption," including refinery shutdowns and export constraints. Oil has climbed more than 30% since the war began last weekend, pushing the US average gasoline price to about $3.32 a gallon, roughly 35 cents higher than Sunday. Stocks slid on the turmoil, with the Dow dropping about 900 points and the S&P 500 and Nasdaq each falling more than 1.5% at the open.