Global Oil Prices Jump 38% in a Week

Reported by KOMPAS.com – Global oil prices surged sharply over the past week as the Iran conflict intensified, disrupting global energy shipping routes through the Strait of Hormuz. US crude prices recorded their biggest weekly rise since at least 1985 on Friday (7 March 2026). The surge occurred as the conflict, which has been ongoing for almost a week, effectively closed the Hormuz Strait, a vital conduit for global energy shipments, to ship traffic. The benchmark US crude, West Texas Intermediate (WTI), jumped more than 38 percent from its pre-conflict close. Prices briefly topped $92 per barrel. The two benchmarks are now at price levels last seen in April 2024 for Brent and at least since October 2023 for WTI. The price surge is sparked by one of the largest supply disruptions in several years. Analysts say prices still have room to rise further if the conflict continues. “Without an agreement and rapid cessation of hostilities, crude markets could begin to experience major disruptions within days, not weeks or months,” said Macquarie global energy strategy analyst Vikas Dwivedi, quoted by Yahoo Finance. Vortexa data show about 16 million barrels of oil currently held up in the Persian Gulf region as tankers cannot proceed to buyers. The situation is forcing oil producers to cut production due to unavailable shipping routes. Iraq on Tuesday announced a production cut of 1.5 million barrels per day. The Wall Street Journal report also said Kuwait is likely to take similar steps. JPMorgan Chase analysts estimate that if the Hormuz Strait remains impassable, production cuts could rise to 3.3 million barrels per day by day 8 of the conflict, 3.8 million barrels per day by day 15, and 4.7 million barrels per day by day 18. However in recent days, targets have begun shifting to key energy facilities that could further disrupt the global oil supply chain. Since Tuesday, several energy facilities have reportedly been affected. The Bapco Energies refinery in Bahrain was reportedly attacked. Meanwhile, the Ras Tanura refinery in Saudi Arabia has halted operations, and the Ras Laffan LNG complex in Qatar declared force majeure.