Market News
Oil prices surpass $92 a barrel as Middle East conflict continues - YAHOO FINANCE
Oil (BZ=F, CL=F)
Oil prices pushed past $92 a barrel on Friday afternoon, as Donald Trump demanded "unconditional surrender" from Iran, raising fears of a prolonged conflict that will impact global oil supplies.
Brent crude (BZ=F) futures were up 8.38% at $92.57 per barrel at the time of writing, while West Texas Intermediate futures (CL=F) rose by over 11% to $90.02 a barrel.
Prices soared after the US president wrote on Truth Social that there would be "no deal with Iran except UNCONDITIONAL SURRENDER".
The US-Iran conflict has disrupted oil and gas production and brought shipping to a standstill in the critical shipping route, the Strait of Hormuz – raising fears about the impact on the global economy.
Qatari energy minister Saad al-Kaabi on Friday warned that Gulf exporters might have to suspend production and that it will take "weeks to months" to restore deliveries after Iranian drone strikes.
He also told the Financial Times on Friday that war in the Middle East could “bring down the economies of the world”.
The sharp rise came after oil prices slipped earlier in the session, following reports that the Trump administration was potentially considering intervening to help deal with the recent surge in prices.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, earlier said: "Potential measures under discussion include releasing crude from US emergency reserves, granting waivers on fuel-blending requirements, and even allowing the US Treasury to trade oil futures."
The US issued a 30-day waiver for Indian purchases of Russian oil on Thursday evening.
However, Britzman earlier warned of the possible ramifications of rising oil prices on the global economy.
"Higher prices tend to feed through to consumers almost immediately via rising petrol costs, which in turn risks reigniting inflation pressures just as central banks were hoping for some relief," he said.
