The global oil market just delivered a jolt few were expecting this quickly. Prices have surged past $90 per barrel, triggered by escalating conflict in the Middle East and disruption to one of the world\u2019s most important shipping routes. For drivers, businesses and governments alike, the ripple effects could be only beginning.<\/p>\n\n\n\n
Oil traders reacted almost immediately once news spread that shipping through the Strait of Hormuz had been severely disrupted. The narrow waterway sits between Iran and Oman and carries roughly 20% of the world\u2019s crude oil supply. In other words, when something goes wrong there, the entire energy market pays attention. The result was a rapid surge in prices. West Texas Intermediate (WTI) crude climbed around 12% over the week, settling near $90.90 per barrel. The international benchmark Brent crude also surged, closing close to $92.69 per barrel.<\/p>\n\n\n\n
For oil markets, that type of weekly jump is extremely rare. In fact, analysts say it marks the largest weekly rise in WTI futures since trading began in 1983, reports ABC News<\/a>. Even seasoned energy traders \u2014 people who have seen decades of volatility \u2014 described the move as dramatic. Part of the panic comes from uncertainty. Tankers have reportedly been attacked since the conflict escalated, and Iranian officials warned ships attempting to cross the strait could face further threats.<\/p>\n\n\n\n