The price of crude oil approached $120 per barrel early Monday as the war in the Middle East between the U.S., Israel and Iran raged through the weekend. Approximately 20% of the world's oil production must transit the Strait of Hormuz, which is controlled by the Islamic Republic, to reach global markets. The prospect of an energy supply shock plus a weakening employment situation has investors, traders and speculators on full alert for stagflation.The front-month crude oil futures contract traded to a nearly four-year high of $119.48 per barrel vs the 16-year high of $130.50 in March 2022, after Russia invaded Ukraine, and the all-time high of $147.27 in July 2008, when a combination of rising geopolitical tensions, a spike in Asian demand and a weak dollar "supersized the bid in the barrel," Mizuho Securities Director of Futures Bob Yawger notes.That's after the February jobs report on Friday showed a surprise decline in payrolls and an uptick in the unemployment rate to 4.4%. West Texas Intermediate crude oil futures rose 4.3% to close at $94.77.
