Brent crude rose above $90 per barrel for the first time in nearly two years as geopolitical tensions and supply constraints pushed oil to its largest weekly gain since 2024.
By yourNEWS Media Newsroom
Global oil prices surged this week, with Brent crude climbing above $90 per barrel for the first time in roughly two years as escalating tensions tied to the conflict with Iran and supply disruptions pushed energy markets sharply higher.
According to reporting from Barron’s, the international oil benchmark crossed the $90 threshold after a steady rally over the past three weeks. Data from Dow Jones Market Data indicates the last time Brent traded above that level was April 16, 2024.
The price surge intensified after reports that Kuwait was forced to reduce production at several oil facilities due to storage constraints, according to individuals familiar with the matter cited by The Wall Street Journal.
Brent crude has climbed 16.4 percent this week, while West Texas Intermediate crude has jumped 19.2 percent, putting both benchmarks on track for their steepest weekly gain since Russia launched its full-scale invasion of Ukraine in February 2022.
The rally follows the outbreak of conflict on Feb. 28 between the United States and Israel on one side and Iran on the other. The fighting has halted tanker traffic through the Strait of Hormuz, a critical shipping route that typically carries about one-fifth of the world’s daily oil supply.
Disruptions have spread across the Middle East’s major energy-producing regions, leading to interruptions in production as well as the shutdown of several refineries and liquefied natural gas facilities.
Priyanka Sachdeva, a senior market analyst at Phillip Nova, said continued disruption around Hormuz could have major implications for global oil markets.
“With every passing day, halted activities in Hormuz will have two major impacts on oil: the inability to store 20 million barrels per day and the lack of flow to the world, which could drive global energy prices higher,” Sachdeva said.
In response to rising prices, the U.S. Treasury Department is expected to announce measures intended to address energy market pressures tied to the Iran conflict. A senior White House official said the actions could involve steps related to the oil futures market, though no specific details were provided.
Such a move would represent an unusual attempt by Washington to influence energy prices through financial markets rather than adjustments to physical oil supply.
The Treasury Department also granted waivers allowing companies to purchase sanctioned Russian oil currently stored on tankers, a measure aimed at easing supply constraints that have forced refineries in parts of Asia to reduce fuel processing.
Initial waivers were issued to Indian refiners, which have begun purchasing millions of barrels of Russian crude stored in offshore cargoes. The purchases mark a shift after months of pressure on those companies to halt buying Russian oil.
Ship-tracking data from Kpler shows roughly 30 million barrels of Russian crude currently available aboard vessels positioned in the Indian Ocean, the Arabian Sea and the Singapore Strait, including supplies held in floating storage.
Despite the recent spike, analysts note that the current rally remains smaller than earlier shocks to global oil markets. During the 2022 invasion of Ukraine, crude prices surged past $100 per barrel.
Tony Sycomore, an analyst at IG, said the current move remains relatively moderate in a historical context.
“It’s important to put this move into perspective: despite crude’s almost 20% surge this month, the price is currently just $3.40 above its average over the last four years,” Sycomore said Friday.
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