MUMBAI, India — Global oil prices climbed above $100 per barrel on Thursday after Iran said it is not engaged in direct negotiations with the United States to end the ongoing conflict, heightening concerns over supply disruptions.
Brent crude futures rose 1.21% to $103.46 per barrel, while U.S. West Texas Intermediate crude gained 1.35% to $91.54 per barrel as tensions in the Middle East escalated.
Iranian Foreign Minister Abbas Araghchi said that exchanges between Tehran and Washington through intermediaries should not be interpreted as negotiations, and signaled that Iran is likely to reject a U.S.-backed ceasefire proposal.
The price jump follows a sharp decline in crude on Wednesday, when markets reacted to hopes of a potential ceasefire in the region.
Analysts said recent volatility in oil prices could have broader implications for economies such as India. A $10 per barrel change in crude prices typically affects India’s current account deficit by 0.3 to 0.5 percentage points of GDP and can increase consumer price inflation by 20 to 30 basis points, depending on how costs are passed through.
Amid the tensions, Iran also said it would not restrict vessels from five “friendly” countries — India, Russia, China, Pakistan, and Iraq — allowing them to pass through the strategically critical Strait of Hormuz.
However, Iranian officials indicated that ships linked to countries viewed as adversaries or involved in the conflict would be barred from transiting the key maritime route, including those from the United States, Israel, and certain Gulf nations.
The Strait of Hormuz remains one of the world’s most vital oil shipping corridors, and any disruption there is closely watched by global energy markets. (Source: IANS)
