U.S. crude oil prices posted their biggest weekly gain in futures trading history on Friday, as escalating wars in the Middle East caused major disruptions to global fuel supplies.
west texas intermediate Futures rose 12.21%, or $9.89, to close at $90.90 per barrel. global benchmark brent It rose 8.52% ($7.28) to settle at $92.69 per barrel.
U.S. crude oil soared 35.63%, marking the biggest weekly gain in futures contracts since 1983. Brent crude rose about 28%, posting its biggest weekly gain since April 2020.
President Donald Trump on Friday called for unconditional surrender from Iran, raising concerns about a protracted war that could wreak havoc on global oil and gas markets. The war has already brought traffic through the Strait of Hormuz, an important route for energy supplies, to a near standstill.
Qatar’s Energy Minister Saad Al Kaabi told the Financial Times on Friday that oil prices could reach $150 a barrel in the coming weeks if oil tankers are unable to pass through the strait.
This could lead to a “slump in the global economy,” Kaabi said.
“As long as this situation continues, we expect that all those who have not requested force majeure will do so in the coming days,” Kaavi told the FT. “All exporters in the Gulf will have to claim force majeure. If they don’t, they will legally have to pay for it at some point and that’s their choice.”
The Trump administration on Friday announced a $20 billion insurance program for oil tankers in the Persian Gulf, but the measure did little to calm the oil market.
Two Iraqi officials told Reuters on Tuesday that Iraq had halted production of 1.5 million barrels per day. Kuwait has also begun cutting production due to a lack of storage space, people familiar with the matter told The Wall Street Journal on Friday.
“The market is moving from pricing pure geopolitical risk to grappling with tangible operational disruptions,” Natasha Kaneva, JPMorgan’s head of global commodity research, told clients in a note Friday.
Kaneba said production cuts could approach 6 million barrels a day by the end of next week if the strait remains impassable. JPMorgan expects the United Arab Emirates to show supply constraints next week.
The average price of a gallon of regular gasoline rose nearly 27 cents to $3.25 in the past week through Thursday, according to data from U.S. travel group AAA.
The war between Iran and the United States entered its seventh day on Friday. Secretary of Defense Pete Hegseth said at a press conference Thursday that the United States is “just beginning the fight.”
“Iran is hoping that we can’t sustain this, but this is a really terrible miscalculation,” he told reporters.
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