Crude oil prices surge as US-Iran tensions escalate and supply fears grow
Crude oil prices surged as Brent crossed $111 per barrel amid rising US-Iran tensions and renewed supply disruption fears. WTI and MCX crude also gained sharply after reported attacks in the UAE and Saudi Arabia and concerns over Strait of Hormuz.
New Delhi: Global crude oil prices extended gains on Monday as escalating tensions between the US and Iran fuelled concerns over supply disruptions after a nuclear facility in the United Arab Emirates was attacked.
International oil benchmark Brent crude rose as much as 2.37 per cent or $2.60 to $111.86 per barrel.
Meanwhile, US West Texas Intermediate (WTI) crude advanced 3.11 per cent, or $3.28, to $108.70 per barrel.
In the domestic markets, crude oil futures (June 18) on Multi Commodity Exchange (MCX) traded at Rs 9,978, an increase of 3.02 per cent or around Rs 300.
Crude prices had already climbed more than 7 per cent last week as hopes for a peace agreement weakened and tensions around the Strait of Hormuz escalated amid continued attacks and territorial seizures.
Oil markets gained further after a fresh wave of drone strikes targeted the UAE and Saudi Arabia, while escalating rhetoric from Washington and Tehran fuelled fears of a wider regional conflict.
Reports claim that UAE authorities said they were investigating the source of the strike on the Barakah nuclear power plant and asserted the country’s right to respond to what it described as “terrorist attacks”.
US President Donald Trump also signalled a tougher stance on Iran, saying he had agreed with Chinese President Xi Jinping that Tehran must not be allowed to develop nuclear weapons and should reopen the Strait of Hormuz.
Nearly one-fifth of global oil and liquefied natural gas shipments pass through the Strait of Hormuz, making it a key export route for major producers such as Saudi Arabia, Iraq and Qatar.
In a post on his Truth Social platform, Trump warned Iran that “the clock is ticking”, signalling growing pressure on Tehran amid stalled diplomatic efforts.
Meanwhile, Asian equity markets traded mostly lower, with Japan’s Nikkei falling around 1 per cent and Hong Kong’s Hang Seng declining over 1 per cent, while South Korea’s KOSPI gained nearly 1 per cent.
