US Oil Prices Surge Over 11% as Iran Conflict Halts Strait of Hormuz Traffic, Fueling Record Weekly Rally

US oil futures climbed more than 11% on Friday and are heading for an unprecedented weekly gain of about 35% as the Iran conflict disrupts production and shipping across the Middle East. Traffic through the Strait of Hormuz, which typically handles around 20 million barrels of crude a day or roughly one-fifth of global seaborne supply, has been effectively halted amid ongoing Israel and Iran strikes, and Pepperstone senior research strategist Michael Brown said prices are likely to rise further the longer the route remains blocked. Some oil fields in Kuwait and Iraq are reportedly under storage pressure, increasing the likelihood of forced production cuts if security risks or tank capacity constraints force shutdowns that could take weeks or months to reverse. West Texas Intermediate crude for April delivery jumped 11.2% to $90.11 per barrel on Friday, while Brent crude rose 9.3% to $93.23 and is now up about 29% for the week, marking its best weekly performance since April 2020.