The Iran conflict has pushed oil prices past $90 a barrel, marking the biggest weekly gain since the Covid-19 pandemic, and raising concerns about a fresh surge in global inflation. Brent crude briefly hit $91.89 on Friday, up from $72.50 before the US-Israel strike on Iran, with prices rising more than 25% in a week.
Fears of a broader storage crisis in the Gulf, where Saudi Arabia and the UAE could reach capacity within 20 days, threaten further production halts. Qatar’s energy minister warned that prolonged conflict could force all Gulf exporters to stop production, potentially sending oil to $150 a barrel.
The disruption has affected global gas markets. UK gas prices reached three-year highs amid worries Europe will compete with Asia for LNG imports, with Iran threatening tankers passing through the Strait of Hormuz. At least nine vessels have already been attacked since February 28.
Financial markets have reacted sharply. UK and Eurozone bond yields jumped, weakening hopes of near-term rate cuts. Stock markets in Asia and Europe suffered steep losses, with airline shares among the worst hit. Meanwhile, the US dollar strengthened and gold prices fell about 3.5% during the week.