Brent Crude Surges Past $90 as Kuwait Cuts Oil Production, Middle East Tensions Escalate

Global crude oil prices have surged, with Brent crude reaching $90 a barrel for the first time in nearly two years, driven by escalating tensions in the Middle East and a production cut by Kuwait. The disruption to shipping through the Strait of Hormuz is a major factor contributing to the price increase, alongside concerns about regional supply.

Kuwait Initiates Production Cuts Amid Storage Constraints

Kuwait has begun reducing oil production at select fields due to limited storage capacity, according to reports from The Wall Street Journal. This move signals a significant impact on regional supply, exacerbating existing concerns about potential disruptions.

Strait of Hormuz Disruption Fuels Price Hike

The ongoing conflict in the Middle East has severely hampered shipping traffic through the Strait of Hormuz, a critical chokepoint for global oil supplies. Disruptions are estimated to be impacting between 7 to 11 million barrels of oil per day, according to Citigroup Inc.

US Response and Potential Reserve Releases

US President Donald Trump has indicated potential “imminent action” to alleviate price pressures, while National Economic Director Kevin Hassett stated the White House is not currently considering tapping the Strategic Petroleum Reserve. However, the Treasury Department has eased restrictions on India’s purchases of Russian oil. Japan is also reportedly considering releasing its own reserves, though no action has been taken yet. Market participants speculate a coordinated release from multiple nations’ emergency oil inventories could be enacted to maximize impact.

US Labor Market Shows Signs of Weakness

In a separate development, the US economy experienced a loss of 92,000 jobs in February, according to data released this month. This decline, even accounting for a strike by Kaiser Permanente healthcare workers, suggests a “fragile” labor market, as noted by Paul Ashworth, chief North America economist at Capital Economics. The Guardian reports that job losses were broad-based, affecting sectors such as healthcare, construction, manufacturing, transportation, and leisure & hospitality. The information sector has shed 30,000 jobs since December, coinciding with the release of Anthropic’s Claude Opus 4.5 AI model.

Oil Price Overview (March 7, 2026)

As of today, March 7, 2026:

• Brent Crude: $90+ per barrel
• WTI Crude: Above $85 per barrel (first time since April 2024)
• Kuwait Export Blend: 84.24

Oilprice.com provides real-time oil price charts and data.

Key Takeaways

• Brent crude has surpassed $90 a barrel due to Middle East tensions and Kuwait’s production cuts.
• Disruptions in the Strait of Hormuz are significantly impacting global oil supply.
• The US is considering various options to address rising oil prices, including potential reserve releases.
• The US labor market experienced a notable decline in February, raising concerns about economic fragility.