Oil prices posted their biggest weekly surge on record as tensions between the United States and Iran triggered fears of major supply disruptions in global energy markets.

U.S. crude futures jumped more than 35% for the week, marking the largest weekly gain since futures trading began in 1983. The spike reflects growing concerns that the expanding conflict could restrict shipments through one of the world’s most critical oil routes.

The sharp rally followed comments from Donald Trump demanding Iran’s “unconditional surrender,” which raised fears that the conflict could escalate further.

Oil Futures Post Record Weekly Gain

U.S. benchmark West Texas Intermediate crude rose sharply during Friday trading.

Prices climbed 12.21% on the day, gaining $9.89 to settle at $90.90 per barrel. Global benchmark Brent crude also surged, rising 8.52% to close at $92.69 per barrel.

For the week overall, West Texas Intermediate gained 35.63%, the biggest weekly rise in the history of the futures contract. Brent crude rose nearly 28%, its strongest weekly performance since 2020.

The surge reflects mounting anxiety about supply disruptions linked to the ongoing war.

Strait of Hormuz Disruptions Driving Market Fears

Much of the concern centers on the Strait of Hormuz, a narrow waterway that carries a large share of the world’s oil exports.

Energy shipments through the route have slowed significantly as military tensions increase. Tanker traffic has approached a standstill as shipping companies and insurers evaluate security risks in the region.

Energy analysts warn that any sustained closure of the route could sharply tighten global oil supply.

Qatar’s energy minister, Saad al-Kaabi, said crude prices could climb to $150 per barrel if tankers remain unable to pass through the waterway.

Such a scenario, he warned, could trigger serious economic consequences worldwide.

Supply Cuts Add to Market Pressure

In addition to shipping disruptions, production cuts in several oil-producing countries have increased pressure on global supply.

Officials in Iraq said the country has already shut down roughly 1.5 million barrels of oil production per day. Kuwait has also begun cutting output after reaching storage limits, according to reports.

Analysts at JPMorgan Chase said production losses could reach as much as six million barrels per day if shipping routes remain blocked.

These developments have shifted the oil market from pricing geopolitical risk to confronting real supply disruptions.

Gasoline Prices Begin Rising

The spike in crude oil prices is already filtering through to consumers.

According to the American Automobile Association, the average price for regular gasoline in the United States increased nearly 27 cents over the past week to about $3.25 per gallon.

Higher energy prices can ripple through the economy by raising transportation costs, increasing manufacturing expenses, and pushing up household fuel bills.

Governments Move to Stabilize Markets

U.S. officials have attempted to calm energy markets by introducing measures designed to protect shipping in the Persian Gulf.

The administration announced a $20 billion insurance program aimed at supporting oil tankers operating in the region. The program is intended to reduce financial risks for shipping companies transporting fuel through high-risk waters.

Despite these efforts, traders remain cautious as the war continues.

The conflict entered its seventh day this week, with defense officials indicating that military operations could continue for an extended period.

Energy markets are now closely watching developments in the region, particularly whether shipping through the Strait of Hormuz can safely resume.