Oil Prices Soar Past $100 & Workers Are Flocking to ‘AI Man Camps’

What It Covers

Oil prices surpass $100 per barrel after the Strait of Hormuz closes following a US-Israel strike on Iran, cutting 20 million barrels of daily supply. February's jobs report shows a surprise loss of 92,000 jobs, unemployment rises to 4.4%, and AI data center construction drives a boom in rural worker camps.

Key Questions Answered

• •Oil Supply Shock Scale: The Strait of Hormuz closure removes 20 million barrels per day from global markets — nearly four times larger than the next biggest historical shock, the 1979 Iranian Revolution, which cut 5.5 million barrels daily. September futures trading near $70 suggests traders expect medium-term resolution, but near-term prices remain above $100.
• •Diesel as Economic Multiplier: Diesel prices recorded their single largest one-day increase ever at 22 cents on Friday. Because diesel powers the trucks and farm equipment behind virtually every consumer and industrial product, rising diesel costs function as a broad inflation tax across the entire economy, compounding energy price pressures already flowing from crude oil.
• •Stagflation Risk Emerging: The Fed faces simultaneous accelerating inflation from oil prices and a deteriorating labor market — conditions that make every policy move counterproductive. The US has shed jobs since May 2025, with only healthcare sustaining gains. A physician strike in February exposed how fragile single-sector dependence makes the overall employment picture.
• •AI Man Camps as Career Opportunity: Data center electricians earn up to $130 per hour on ZipRecruiter, versus $30 per hour for standard electricians. Construction trades are projected to grow 6% over the next several years — double the 3% economy-wide average — with electricians specifically at 9%, making data center construction one of the highest-paying blue-collar growth sectors available.
• •Energy Exposure by Region: Asia faces the most acute vulnerability from the Strait of Hormuz closure. Myanmar has implemented fuel rationing, Thailand suspended fuel exports, and the Philippines mandated office computer shutdowns at lunch and air conditioning limits of 75°F. The US, Saudi Arabia, and China hold strategic reserves and alternative supply routes, providing partial but incomplete buffers.