economy
March 6, 2026
Iran war pushes oil price above $90, threatening rise in global inflation
Reports Kuwait was cutting output pushed up cost of barrel of Brent crude to highest weekly gain since Covid pandemic began
TL;DR
- Oil prices have surpassed $90 a barrel, marking the largest weekly gains since the Covid-19 pandemic.
- Concerns are rising over a Middle East storage crisis that could force oil producers to halt extraction.
- Qatar's energy minister predicts potential production shutdowns by Gulf energy exporters if the war continues, leading to oil prices of $150 per barrel.
- Disruptions to LNG exports from Qatar, which accounts for 20% of global exports, are impacting UK gas prices.
- Threats to tankers in the Strait of Hormuz and market skepticism towards US security measures add to market jitters.
- The conflict is fueling inflation fears, negatively affecting UK and Eurozone bond prices and diminishing hopes for interest rate cuts.
- Asian, UK, and European stock markets have experienced significant downturns, with airline stocks particularly hard-hit.
- The US dollar has strengthened, while the gold price has fallen during the week.
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