NEW DELHI– Global crude oil prices surged more than 3 percent on Monday, approaching a 52-week high as escalating tensions in West Asia raised fears of prolonged supply disruptions.
Brent crude futures climbed as much as 3.66 percent to an intraday high of $116.70 per barrel, while U.S. benchmark West Texas Intermediate (WTI) rose over 3 percent to cross $103 per barrel.
The latest spike followed reports of missile launches by Yemen’s Iran-backed Houthi group targeting Israel over the weekend. The group has warned of continued attacks until strikes on Iran and its allied militias cease, adding fresh uncertainty to already strained global energy markets.
Brent prices have surged more than 50 percent in March, returning to levels seen earlier during the conflict despite ongoing diplomatic efforts to ease tensions.
Analysts said crude oil remains the most critical macroeconomic variable at this stage, with markets increasingly factoring in the risk of extended supply disruptions.
“Market participants are increasingly pricing in a prolonged supply disruption scenario, with some global estimates indicating a potential spike towards $200 per barrel if tensions persist,” analysts said.
For import-dependent economies such as India, higher oil prices could translate into rising inflation, pressure on corporate margins, and a worsening current account balance, analysts added.
Global equity markets also came under pressure amid the geopolitical uncertainty. On Wall Street, the S&P 500 fell 1.67 percent, while the Nasdaq dropped about 2 percent.
Asian markets followed suit, with Japan’s Nikkei plunging nearly 4 percent. Hong Kong’s Hang Seng declined more than 1 percent, and South Korea’s Kospi slipped almost 3 percent.
In India, benchmark indices Sensex and Nifty also opened lower, each falling more than 1 percent in early trade as the conflict in West Asia entered its fifth week and continued to widen. (Source: IANS)
