MW U.S. oil surges 11% toward a record weekly gain, as the Middle East conflict spurs worries over production cuts

By Myra P. Saefong and Steve Goldstein

Qatar's energy minister warned prices could reach $150 and that supplies from the Persian Gulf could stop entirely

U.S. oil prices topped $90 a barrel on Friday.

U.S. oil prices rallied Friday and were on track to set a record weekly gain of more than 30%, as the Middle East begins to feel a squeeze in production and storage capacity as the Iran conflict runs though a seventh day.

Shipping traffic through the Strait of Hormuz has been virtually shut down as Israel and Iran continue to carry out strikes in the Middle East, following the initial U.S.-Israel attack on Iran last weekend.

"Storage is an issue, and arguably that's the main risk right now," said Michael Brown, senior research strategist at Pepperstone. "If production does need to be shutdown, as we've [reportedly] seen from fields in Kuwait and Iraq...it can take many weeks, or even months, to fully restart production to the level it was at previously."

That would prolong any gains seen in the benchmark crude prices, he told MarketWatch.

Read: Oil-production shutdowns loom as some Middle Eastern countries could run out of storage

On Friday, West Texas Intermediate-grade oil (CL00) for April delivery (CLJ26) jumped 11.4% to $90.21 a barrel, on track to notch a weekly rise of around 35% - which would the biggest weekly rise based on record, which dates back to March 1983, according to Dow Jones Market Data. It's poised to mark its highest finish since September 2023, FactSet data show.

Brent crude (BRN00) saw its May contract gain 8.4% to $92.60. It trades 28% higher for the week. That would be its best weekly performance since the week ended April 3, 2020.

Read: Why the U.S.'s 'newfound oil' in Venezuela won't offset an Iran oil shock

Qatar's Energy Minister Saad al-Kaabi warned in the Financial Times that the Middle East conflict could force Persian Gulf countries to halt energy shipments within a matter of weeks. He said that could drive oil to $150 a barrel and bring down the economies of the world.

Kuwait, meanwhile, has started to cut oil production at some of its oil fields because of a lack of room to store its crude, The Wall Street Journal reported, citing people familiar with the matter.

One carrier with liquefied petroleum gas that had been sanctioned by the U.S. government did transit the strait, according to Ed Finley-Richardson, a shipping expert. He said that likely means it's taking energy supplies from Iran to China.

The U.S. gave permission for 30 days for Indian refiners to buy Russian oil that has been stranded at sea. Treasury Secretary Scott Bessent said it was a stop-gap measure to alleviate pressure in the energy markets.

-Myra P. Saefong -Steve Goldstein

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March 06, 2026 12:46 ET (17:46 GMT)

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