By Laura Sanicola and Alex Kozul-Wright
The price of Brent crude just surged past $90 a barrel for the first time in two years as the escalating conflict in Iran continues to fuel a meteoric rally that shows no signs of slowing down. The last time the global benchmark cleared the psychologically important $90 level was April 16, 2024.
Brent crude futures were up 5.4% to $90.11 a barrel in Friday trading. West Texas Intermediate futures were up 7.6% at $87.33.
The move came after Kuwait was forced to reduce production at some of its oil facilities, according to a report from The Wall Street Journal. The country is suffering storage issues as Iran has effectively shut down the Strait of Hormuz, the main way to ship oil out of the Persian Gulf.
Kuwait, a member of OPEC, produces 2.6 million barrels per day of oil, according to the cartel's official data. The country is looking to produce only what it can consume domestically, according to the Journal report, which is about 1.2 million barrels per day, according to an analysis from OPIS, a Dow Jones company.
Kuwait would be the latest Middle East oil producer to cut production due to a lack of available vessels to carry crude. And once local storage availability fills up, production cuts are inevitable.
Iraq has already had to cut production by about half, and producers in Saudi Arabia and the UAE are running out of storage as well, according to oil intelligence firm Kpler.
In an interview published Friday morning, Qatar's Energy Minister Saad al-Kaabi told the Financial Times that war in the Middle East could force Persian Gulf countries to halt energy production within days. That could drive oil up to $150 a barrel, he warned.
The rise in oil prices over the past week has been nothing short of dramatic. Both benchmarks have now rallied over the past five trading days. Brent crude is up 19% in that period, while WTI has risen by an eye-popping 25% -- their biggest weekly gains since the week ending March 4, 2022, at the start of Russia's war in Ukraine.
In addition to fears about oil supply drying up, President Donald Trump ratcheted up rhetoric about his goal in the Middle East. On Friday morning, he said that "there will be no deal with Iran except UNCONDITIONAL SURRENDER!," adding that an end would include "the selection of a GREAT & ACCEPTABLE Leader(s)."
The administration has repeatedly said the war would last several weeks and that it would be temporary.
Write to Laura Sanicola at laura.sanicola@barrons.com and Alex Kozul-Wright at alexander.kozul-wright@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 06, 2026 09:53 ET (14:53 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.