• Brent crude oil prices surged above $90 as the Middle East conflict escalates.
• The US President demands "unconditional surrender" from Iran, impacting market stability.
• Maritime traffic through the Strait of Hormuz is virtually halted, raising supply concerns.
• The conflict has heightened fears of sustained inflation and economic slowdown.
• Global stock markets experienced declines due to disappointing US employment data.

Crude oil prices surged on Friday amid escalating tensions in the Middle East, pushing Brent North Sea crude above $90 per barrel, marking its highest level since April 2024. The surge is attributed to fears of potential supply disruptions, with Brent rising more than 5% to $90.25, while West Texas Intermediate (WTI) climbed 8.1% to $87.56, according to Indiatimes.

The international benchmark Brent crude continued its upward trajectory, reaching $92.69 per barrel—a rise of 8.5% in one day and nearly 30% over the week. This is largely due to comments from US President Donald Trump, who stated that only the "unconditional surrender" of Iran would conclude the ongoing conflict, raising fears of an extended period of disruption in oil supply, according to Le Monde and Channel News Asia.

As maritime traffic has virtually stopped through the critical Strait of Hormuz—responsible for transporting about one-fifth of the world's oil—market reactions heightened. Analysts expressed that Trump’s remarks dashed hopes for a swift resolution to the conflict, meaning oil prices could remain elevated for a prolonged period. Kathleen Brooks from XTB stated that this situation increases the risk of inflation affecting the global economy, according to Le Monde and Channel News Asia.

Disruptions have been noted from reported attacks on oilfields in Iraq and the Kurdistan region, leading to halted production in US-run oilfields, further exacerbating supply concerns. Kuwait has begun cutting production due to insufficient storage capacity, according to reports from several sources, including Channel News Asia and Le Monde.

Alongside the surge in oil prices, the US stock market has reacted negatively to poor employment data. The US economy lost 92,000 jobs in February, exacerbating concerns about inflation and economic growth. Analysts suggest that while investors anticipated potential interest rate cuts, the increasing oil prices complicate monetary policy decisions, as central banks may hesitate to lower rates amid rising inflation, according to Channel News Asia and Le Monde.