Oil Prices Surge Amid Crisis in the Strait of Hormuz

Oil prices have surged, with U.S. crude rising 35% weekly and Brent up 28%, amid a crisis in the Strait of Hormuz.

Escalating tensions between the U.S. and Iran have driven prices up, with WTI recording its largest weekly gain since 1983 and Brent its largest since 2020.

Donald Trump demanded an 'unconditional surrender' from Iran, escalating concerns about a prolonged war. Qatar's Energy Minister, Saad al-Kaabi, warned that prices could reach $150 a barrel if tankers cannot pass through the Strait of Hormuz.

Iraq has halted production of approximately 1.5 million barrels per day, while Kuwait has also begun to limit production.

Natasa Kaneva of JPMorgan noted that the market is shifting from geopolitical risk assessment to addressing actual supply disruptions.

Brent rose 8.52% to $92.69 a barrel, while U.S. crude West Texas Intermediate jumped 12.21% to close at $90.90 a barrel.