Dow falls 450 points, US oil surges to $90 as Trump demands Iran surrenders

US oil prices surged to $90 a barrel on Friday after President Trump demanded unconditional surrender from Iran – fueling fears of a lasting conflict that Qatar’s energy minister warned could “bring down the economies of the world.”Brent crude oil hit $86 a barrel, while West Texas Intermediate crude jumped above $90 – pushing national average gasoline prices to $3.32 a gallon on Friday, according to AAA.The Dow Jones Industrial Average tumbled 453 points, or nearly 1%, at Friday’s close while the S&P 500 and Nasdaq fell 1.3% and 1.6%, respectively.The Dow slid 3% this week, its worst in nearly a year.

Investors are fearful that an ongoing conflict could prolong Iran’s blockade of the Strait of Hormuz, a vital maritime route for 20% of the world’s oil supply – which economists have warned could slam gasoline prices and overall inflation.“I don’t have any concern about it,” Trump told Reuters Thursday, when asked about higher prices at the pump.“They’ll drop very rapidly when this is over, and if they rise, they rise, but this is far more important than having gasoline prices go up a little bit.”Energy Secretary Chris Wright predicted Friday morning that gas prices will come down in a matter of “weeks, not months,” during an interview with “Fox & Friends.”Qatar’s energy minister Saad al-Kaabi, meanwhile, said he expects all Gulf energy exporters to shut down “within days” – potentially pushing oil as high as $150 a barrel.“This will bring down the economies of the world,” Kaabi told the Financial Times Friday. “If this war continues for a few weeks, GDP growth around the world will be impacted.

Everybody’s energy price is going to go higher.There will be shortages of some products and there will be a chain reaction of factories that cannot supply.”Even if the war ended immediately, it would take Qatar “weeks to months” to return to a normal level of output after an Iranian drone strike forced it ...