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Oil Tops $90 as Hormuz Shipping Stalls and Gulf Output Is Cut

Government stopgaps follow a flight from the Gulf by insurers, with tankers staying away.

Overview

  • Brent rose past $91 and U.S. crude traded above $90 on Friday after a rapid weeklong climb tied to the IranIsraelU.S. conflict.
  • Traffic through the Strait of Hormuz has collapsed by well over 95% as owners avoid the route, with major carriers suspending Gulf operations and some vessels sailing with transponders off.
  • Gulf producers are curbing supply as storage fills, with reports of Kuwait shutting output and Qatar declaring force majeure on gas exports, while analysts warn disruptions could reach several million barrels per day if the stoppage persists.
  • The U.S. issued a 30‑day waiver enabling Indian refiners to buy stranded Russian crude and has proposed government-backed insurance and potential naval escorts, as Japanese refiners urge a release from strategic reserves.
  • Consumer and market fallout is building, with U.S. gasoline averaging about $3.32 per gallon, equity indices sliding, and analysts cautioning about knock-on risks to fertilizer flows and food prices.