U.S. Jobs Slump and Oil Surge Roil Markets Amid Iran War
Employers cut 92,000 jobs in February as oil topped roughly $90–$93 a barrel amid concerns the Iran war is disrupting shipments through the Strait of Hormuz.
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Overview
The Bureau of Labor Statistics reported employers shed 92,000 jobs in February and the unemployment rate rose to 4.4%, sending U.S. stocks sharply lower.
The Iran war pushed oil above $90 a barrel, with Brent crude around $92.32–$92.69, amid reports that shipments through the Strait of Hormuz were being blocked.
Analysts warned of stagflation risks and investor unease, while White House economic official Kevin Hassett called the BLS report "something of a surprise."
The BLS said veterans' unemployment fell from 4.5% to 4.1% and post-9/11 veterans' rates dropped from 5.8% to 4.8%, while manufacturing lost 12,000 jobs in February and 90,000 jobs in 2025.
The Federal Reserve is scheduled to announce its next rate on Feb. 18, and the U.S. government detailed a plan to offer insurance to ships crossing the Strait of Hormuz.
Analysis
Center-leaning sources frame the story toward a cautious, downside view of the labor market by leading with job losses and elevated unemployment, prioritizing skeptical analyst commentary, and foregrounding risks like oil-price inflation and geopolitical uncertainty. They note mitigating factors (strikes, weather) but emphasize subdued hiring and uneven wage gains.
FAQ
Disruptions stem from the US-Iran war, including Iranian warnings to vessels, attacks on ships, electronic interference, and shipping companies like Maersk suspending transits due to risks.
It handles about 20% of the world's oil supply from the Persian Gulf, with limited pipeline alternatives insufficient to replace full tanker capacity.
Prolonged closure could drive oil prices higher, raise inflation, increase gasoline costs, and risk stagflation, severely affecting global growth especially in Asia.
Asian economies like China and India are highly vulnerable as most oil transiting the strait is destined for them, with Iran also impacted since its exports pass through.
