The text reports a sharp, immediate increase in crude oil prices in North American markets, driven by escalating geopolitical tensions in the Middle East that threaten oil production and transport.

Price Surge at Market Open

Benchmark West Texas Intermediate (WTI) crude oil futures rose almost 10% shortly after trading opened, surpassing $90 per barrel and marking the sharpest weekly gain since 2022. Brent crude futures also rose quickly, gaining over 6% to hit $91 per barrel, the highest level since April 2024.

Geopolitical Triggers and Warnings

The price spike was a reaction to warnings from regional governments and an attack on infrastructure. Qatar's Energy Minister warned that all Persian Gulf oil production could halt if conflict persists, predicting prices could reach $150 per barrel if the Strait of Hormuz remains closed. Iraq and Kuwait warned they may be forced to shut-in production due to blocked shipments and dwindling storage capacity, with Kuwait already cutting output. An unidentified drone also attacked Iraq's Sarsang oil field.

Market Reassessment and Broader Impact

Analysts noted the market is reassessing the risk from a prolonged conflict, having initially priced in a short war. Companies like BP and TotalEnergies have withdrawn staff from Iraq. Moody's analysts stated the oil price spike will be painful for the global economy, though their baseline scenario anticipates a quick resolution and only moderately higher prices for 2026. Meanwhile, US natural gas prices rose, though increases in North America were more muted compared to significant spikes in Europe and Asia following the onset of military attacks.