U.S. crude oil prices surged sharply on Friday, rising more than 10% and narrowing the gap with global benchmark Brent as traders searched for available supply amid disruptions linked to the escalating Middle East conflict. The market reaction was first reported by Reuters.
West Texas Intermediate (WTI), the U.S. benchmark, climbed $7.81, or about 9.8%, to $88.96 a barrel during morning trading. Brent crude rose $5.42, or roughly 6.3%, reaching $90.83 per barrel — its highest level since April 2024.
The rally reflects mounting concerns over supply constraints following the effective closure of the Strait of Hormuz after military strikes by the United States and Israel against Iran. The waterway is one of the world’s most critical energy corridors.
Supply fears push oil toward key price levels
The spike marked the second consecutive day in which gains in U.S. crude outpaced Brent. Analysts say buyers are increasingly turning to American oil as shipments from the Middle East face disruption.
“Refiners and trading houses are searching for alternative barrels, and the U.S. is the largest producer,” UBS analyst Giovanni Staunovo told Reuters.
Oil markets are now heading toward their strongest weekly gains since the volatility seen during the early months of the COVID-19 pandemic in 2020.
Under normal conditions, roughly 20% of global oil supply moves through the Strait of Hormuz each day. With the route effectively closed for about a week, an estimated 140 million barrels — equivalent to roughly 1.4 days of global demand — have been prevented from reaching the market.
The conflict has also affected production across the region. Shutdowns of refineries and liquefied natural gas facilities have added to fears that energy exports could be further constrained if the crisis expands.
Some analysts are warning that prices could climb significantly higher if disruptions persist. In an interview with the Financial Times, Qatar’s energy minister said exports from Gulf producers could halt within weeks under a worst-case scenario, potentially driving oil prices to $150 per barrel.
John Kilduff, a partner at Again Capital, said forecasts of oil reaching $100 a barrel now appear increasingly plausible.
Trump dismisses concerns over higher fuel prices
U.S. President Donald Trump said he was not worried about rising gasoline prices tied to the conflict. In an interview with Reuters, he said the military operation remained the administration’s priority.
“If they rise, they rise,” Trump said when asked about the possibility of higher fuel costs for American consumers.
Meanwhile, U.S. officials are considering measures to stabilize energy markets. A White House official said the Treasury Department may announce steps to help counter rising prices.
The Treasury has already issued waivers allowing companies to purchase sanctioned Russian oil stored on tankers, in an effort to ease supply shortages affecting Asian refineries. Indian refiners were among the first to take advantage of the exemptions, buying millions of barrels of Russian crude.
According to ship-tracking firm Kpler, around 30 million barrels of Russian oil are currently available in floating storage across the Indian Ocean, Arabian Sea and Singapore Strait.
Despite these efforts, analysts warn that the longer the Strait of Hormuz remains closed, the greater the pressure on global energy markets and oil prices.