US oil futures surged above $90 a barrel for the first time since October 2023 as the war in Iran disrupts critical energy market flows. The US benchmark jumped more than 11%, heading for its biggest weekly percentage gain in at least two decades. Global benchmark Brent also surged, trading above $92 a barrel.

Shipping through the Strait of Hormuz has nearly halted, creating a chokepoint crisis for global oil flows. Citigroup Inc. estimates the crude oil market is losing 7 million to 11 million barrels a day of supply due to the disruption. The strait handles about a fifth of global oil shipments.

The price spike reflects mounting fears about sustained supply shortages as the conflict escalates. Energy traders are bracing for further volatility as the situation in the Middle East remains fluid. The disruption threatens to keep oil prices elevated well beyond the current spike.