Oil prices hit their highest level in 18 months on Friday, March 7, 2026, with Brent closing at $92.93 per barrel and WTI surpassing $90. The cumulative weekly gain exceeds 35%, the largest jump since the Ukraine invasion in 2022.
US-Iran conflict escalates tensions
The primary catalyst remains the escalating conflict between the United States and Iran. Attacks on oil infrastructure in the Persian Gulf have sparked fears of a significant disruption to global supply. Approximately 20% of the world's oil transits through the Strait of Hormuz, a route now under direct threat.
$20 billion reinsurance facility
In response to the crisis, the US government announced the creation of a $20 billion reinsurance facility specifically designed to cover shipments through the Strait of Hormuz. While intended to maintain maritime trade flows, the measure also signals the severity of the geopolitical situation.
OPEC+ considers emergency meeting
OPEC+ is considering calling an emergency meeting to assess the market situation. Cartel members face pressure to increase production, but geopolitical tensions complicate any decision. Saudi Arabia has indicated it will maintain its current strategy until the situation stabilizes.
Goldman Sachs raises forecast to $110/barrel
Goldman Sachs revised its oil price forecast upward, projecting that Brent could reach $110 per barrel if the conflict extends beyond April. Other investment banks, including JP Morgan and Morgan Stanley, have also adjusted their estimates higher.
Impact on consumers and the economy
The oil rally is already reflected in US gasoline prices, where the average gallon exceeds $4.50. Analysts warn that if prices remain above $90, inflation could accelerate significantly, complicating the Federal Reserve's plans to cut interest rates.
Energy markets will remain the focus next week, with traders watching for any diplomatic developments that could ease or aggravate tensions in the Persian Gulf.
