Crude oil prices near $100 as Iran tightens Hormuz control, ceasefire doubts rise
Global oil prices surged near $100 as West Asia tensions escalated, with Brent Crude and WTI Crude rising sharply after Iran’s Strait of Hormuz warning. Market volatility increased, dragging Indian indices lower despite mixed global equity performance trends
Mumbai: Global crude oil prices rebounded on Monday towards the $100 per barrel mark amid fresh escalations in the West Asia conflict. The international benchmark Brent crude futures rose as much as 7.18 per cent to hit an intraday high of $96.87 per barrel, while US West Texas Intermediate (WTI) crude traded at $91.20, up 8.76 per cent from the previous close.
On the domestic front, crude on the Multi Commodity Exchange (MCX) traded at Rs 8,289, an increase of 6.72 per cent from the previous close. The surge in oil benchmarks followed Iran’s statement that it was tightening control over the Strait of Hormuz, warning mariners that the vital energy route had been closed again.
Meanwhile, US President Donald Trump said Tehran could not blackmail the United States by shutting the waterway. Iran said it was responding to a continued US blockade of its ports, calling it a violation of the ceasefire, while Supreme Leader Mojtaba Khamenei said the country’s navy was ready to inflict ‘new bitter defeats’ on its enemies.
The United States said it had seized an Iranian cargo ship that attempted to breach its blockade, prompting Tehran to warn of retaliation and raising doubts over whether the ceasefire between the two countries would hold even for the two days it is meant to remain in force.
Meanwhile, domestic benchmark indices Sensex and Nifty traded in negative territory with heightened volatility, with early gains being wiped out. Asian markets showed positive performance, with Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s KOSPI rising up to 1 per cent each.
In the previous session, US markets closed on a positive note, with the S&P 500 ending 1.2 per cent higher and the Nasdaq gaining 1.52 per cent.
