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- U.S. crude oil sees largest weekly price jump on record (nbcnews.com)
Oil Prices Skyrocket to Record Highs Amid Escalating Iran Conflict, Sending Markets Tumbling
NEW YORK, NY – Global energy markets are in turmoil as U.S. crude oil just logged its largest weekly gain on record, a surge not seen since the West Texas Intermediate (WTI) contract’s inception in March 1983. The dramatic increase is directly linked to the intensifying conflict in Iran, which is now threatening vital global energy supplies.
On Friday alone, U.S. crude oil futures spiked more than 12%, pushing prices over $91 per barrel – a level not witnessed since late 2022. Since the beginning of the year, the price of U.S. crude has climbed by nearly 60%. Brent crude, the international benchmark, also soared past $94 per barrel, jumping over 9% to its highest point since late 2023.
These significant price movements come amid mounting fears that the ongoing conflict could lead to prolonged energy supply disruptions. Reports, including one from The Wall Street Journal, suggest that Kuwait has begun reducing oil production due to a lack of storage capacity for its crude. While NBC News could not immediately verify this report, industry analysts have been vocal about the potential for such issues.
Adding to the geopolitical tension, former President Donald Trump posted on Truth Social shortly after the report, stating, “There will be no deal with Iran except UNCONDITIONAL SURRENDER!”
The ripple effect wasn’t limited to oil. Stock markets experienced a sharp downturn, with all three major indexes closing firmly in negative territory for the year.
The S&P 500 dropped over 1.3%, the Dow Jones Industrial Average slid 453 points (or 1%), and the Nasdaq Composite tumbled 1.6%. It was the Dow’s worst week since April 2025 and the S&P 500’s worst since October.
Market anxieties were further compounded by a grim labor market report revealing the economy shed 92,000 jobs in February, alongside downward revisions to the previous two employment reports.
“The pace of job gains over the last few months is still dramatically slower than it was in 2024 and much of 2025,” noted Elyse Ausenbaugh, head of investment strategy at J.P. Morgan Wealth Management. “Add higher oil prices given conflict in the Middle East and renewed tariff uncertainty to the convoluted jobs market story, and you have a tricky, stagflationary mix of risks in the backdrop for the Fed.”
This wave of unsettling economic news arrives as the Trump administration grapples with an affordability crisis that has impacted consumers since his return to office. Despite campaign pledges in 2024 to “cut your energy costs in half within 12 months,” inflation spiked after the president introduced sweeping tariffs in April. While some tariffs have been scaled back, inflation remains above the Federal Reserve’s acceptable 2% target.
Administration officials had also indicated that gas prices would decrease following the capture of Venezuela’s President Nicolás Maduro and efforts to revitalize that country’s economy. However, oil companies have shown skepticism about investing in Venezuela.
On Thursday, Trump told Reuters that gas prices would “drop very rapidly when this is over, and if they rise, they rise, but this is far more important than having gasoline prices go up a little bit.”
Earlier in the week, Qatar’s state-run energy firm also announced cuts in the production of liquefied natural gas (LNG) and other energy products.
A critical choke point in global energy trade, the Strait of Hormuz off Iran’s southern coast, is currently a scene of significant disruption. Hundreds of ships carrying oil and LNG are reportedly stranded, unable to pass through the strait to global markets as tensions escalate between the U.S., Israel, Iran, and neighboring countries. Over 20% of the world’s daily oil supply typically transits through this vital waterway.
“On day six of the conflict, commercial traffic through the Strait of Hormuz remained virtually nonexistent,” J.P. Morgan Chase commodities analysts wrote in a Friday morning note. “The market is shifting from pricing pure geopolitical risk to grappling with tangible operational disruption, as refinery shutdowns and export constraints begin to impair crude processing and regional supply flows.”
J.P. Morgan analysts also reported that Iraq has cut production by 1.5 million barrels per day, warning that an additional 4 million barrels per day could be disrupted by the end of next week if the situation does not improve.
Since the conflict began last weekend, U.S. crude oil prices have surged by 35%, directly contributing to higher gas prices for consumers. The national average for gasoline, as of Friday morning, stood at approximately $3.32 per gallon, an increase of nearly 35 cents since Sunday, according to data from GasBuddy and AAA.
The energy market woes extended to natural gas, with U.S. natural gas prices jumping over 6% on Friday. Wholesale gas prices, known as RBOB, also saw an increase of 2.5%.
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