Brent crude oil rises to $89 per barrel, the highest level since April 2024

Brent crude oil rises to $88 per barrel, the highest level since April 2024

• Crude oil prices surged as Middle East conflict blocked exports
• Brent crude rose 20% this week, WTI jumped 25%
• US stock futures fell amid oil price surge and inflation fears

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Crude oil headed higher on March 6 as conflict in the Middle East kept shipping and energy exports through the vital Strait of Hormuz blocked. This is the sharpest weekly gain for crude since Russia launched its full-scale invasion of Ukraine in February 2022.

Brent crude futures have surged 20% this week, while West Texas Intermediate has jumped 25%.

On Friday, Brent extended its climb and was trading over 3% higher at $89 per barrel while WTI rose over 5% to $86. Both benchmarks are trading at their highest levels since April 2024.

Qatar's energy minister told the Financial Times he expects all Gulf energy producers to shut down exports within weeks, a move he said could drive oil to $150 a barrel, according to an interview published on Friday.

"The warning from Qatar's energy minister that a prolonged conflict could bring down economies around the world has again rattled financial markets," Susannah Streeter, chief investment strategist at Wealth Club told Reuters.

European stocks slipped along with US futures on Friday as the US-Iran war drove fresh concerns about oil supplies, prompting traders to rethink their expectations for central bank rate cuts.

Oil started its steep rally after the U.S. and Israel launched strikes on Iran on Saturday, prompting Tehran to stop tankers moving through the Strait of Hormuz, which handles roughly one-fifth of global daily oil supply.

The conflict has since spread across the Middle East's key energy-producing areas, disrupting output and forcing shutdowns of refineries and liquefied natural gas plants.

US stock index futures slipped on Friday as the conflict raging in the Middle East threatened to fuel inflation through higher energy costs, and investors awaited a pivotal jobs report.

At 5:35 pm IST on March 6, Dow E-minis were down 230 points, or 0.48%, S&P 500 E-minis were down 41 points, or 0.6%. Nasdaq 100 E-minis were down 187.8 points, or 0.75%.

AI-chip stocks Nvidia and Advanced Micro Devices were down about 0.7% each. US officials are debating a new regulatory framework for exporting artificial intelligence chips, although the rules were not final.