Oil Prices Surge 27% as Gulf Supply Crisis Deepens
Crude oil prices have surged 27% since the outbreak of the US-Israel war with Iran, with Brent crude topping $93 a barrel on Friday — the highest level in more than two years. The rally accelerated after Qatar's energy minister Saad al-Kaabi warned that all Gulf oil and gas exporters could halt production within days if the conflict continues, raising the specter of $150 oil and a full-blown global energy crisis. The price spike comes at a precarious moment for the world economy. The US unexpectedly shed 92,000 jobs in February, unemployment ticked up to 4.4%, and Treasury yields are climbing as investors reassess inflation expectations. Central bankers face an increasingly difficult balancing act: a weakening labor market would normally call for rate cuts, but surging energy costs threaten to reignite inflation just as it appeared to be under control. For consumers, the effects are already tangible. UK petrol prices have risen 3.7p per liter in a week, airlines are warning of higher fares as jet fuel costs spike, and mortgage lenders have begun repricing loans higher. The question now is whether this becomes a brief disruption or the start of something far more damaging.