New Delhi: International crude oil prices rallied on Monday after renewed military action involving the United States and Iran heightened concerns over the stability of energy supplies from the Gulf region. The escalation has revived fears that shipping through the Strait of Hormuz could face disruptions, pushing oil benchmarks to their highest levels in weeks.
Brent crude traded above $79 per barrel, registering a gain of more than four per cent, while US benchmark West Texas Intermediate (WTI) also posted similar gains to move above $74 per barrel. Traders cited growing geopolitical risks as the primary driver behind the sharp jump in prices.
The latest surge follows US military strikes targeting Iranian defence infrastructure, with Washington claiming the operations were aimed at neutralising threats to commercial maritime traffic. Tehran responded with fresh military activity in the Gulf, increasing concerns that tensions could spill over into one of the world’s busiest energy corridors.
The Strait of Hormuz remains critical to global oil trade, with nearly 20 per cent of the world’s crude exports passing through the narrow waterway. Any threat to navigation in the region immediately impacts energy markets, shipping costs and investor sentiment worldwide.
Apart from crude oil, regional benchmark Murban crude also recorded strong gains during trading, while natural gas prices edged lower. Market analysts noted that investors have shifted their focus from supply expansion announced earlier by OPEC+ to the possibility of geopolitical disruptions affecting exports.
Financial markets reacted cautiously to the developments. Asian equity indices slipped, while the US dollar strengthened as investors sought safer assets amid rising uncertainty. Analysts warned that if crude prices remain elevated for an extended period, inflationary pressures could intensify globally, complicating the monetary policy outlook for major central banks.
The renewed rally has also raised concerns for oil-importing nations, where sustained increases in global crude prices could eventually translate into higher fuel costs for consumers and industries.
Energy experts said the direction of oil prices in the coming days will largely depend on whether the latest military confrontation remains contained or escalates into a broader regional conflict affecting production and transportation infrastructure across the Gulf.
While current prices remain below the highs witnessed during earlier phases of the Middle East conflict, markets are expected to remain volatile as geopolitical developments continue to unfold.
