New Delhi–Global crude oil prices climbed about 3% Tuesday to their highest levels in four weeks as renewed military exchanges involving the United States and Iran raised concerns about potential disruptions to supplies from the Persian Gulf.
International benchmark Brent crude rose as much as 2.82%, or $2.35, to trade above $85 per barrel. U.S. West Texas Intermediate crude gained nearly 3%, or $2.28, to $80.42 per barrel.
In India, crude oil futures on the Multi Commodity Exchange jumped 4.51%, or Rs 332, to Rs 7,692 and reached an intraday high by 11:08 a.m.
The rally followed a nearly 10% increase in Brent prices during the previous session, the benchmark’s biggest single-day gain since May 2020. Rising geopolitical tensions have renewed fears about the security of energy shipments from the region.
Analysts said oil prices are likely to remain volatile as developments in the conflict continue to influence market sentiment.
“Crude oil prices have hit a four-week high amid the escalating Middle East conflict. The US launched its third straight night of strikes on Iran following President Donald Trump’s announcements of a multi-day wave of attacks and a fresh blockade on Iranian trade in the Strait of Hormuz,” they said.
The MCX July crude oil futures contract opened nearly 4% higher at Rs 7,654 and moved toward immediate resistance at Rs 7,729, corresponding to the 200-day exponential moving average on the four-hour chart.
“A breakout above 7,729 could accelerate the uptrend, with the next hurdle at 8,000 during the session. On the downside, key support levels are placed in the 7,400-7,260 range,” the analysts said.
President Donald Trump announced that the United States had reimposed a blockade on Iranian shipping. He also said countries benefiting from U.S. protection of commercial vessels passing through the Strait of Hormuz would be expected to help pay for the operation.
Iran reportedly intensified its military response by launching drones toward U.S. assets in Kuwait and firing cruise missiles at what it described as a hostile vessel.
Tehran also said its agreement with Washington had entered a crisis phase and that it would no longer honor the deal while the United States continued to violate its commitments. (Source: IANS)
