Global crude oil prices surged on Monday, nearing the $100 per barrel mark due to escalating tensions in West Asia. The international benchmark Brent crude futures spiked by 7.18% to reach $96.87 per barrel, while US West Texas Intermediate (WTI) crude traded at $91.20, marking an 8.76% increase from the previous close.
On the domestic front, crude on the Multi Commodity Exchange (MCX) traded at Rs 8,289, showing a 6.72% rise from the previous close. This increase in oil prices came after Iran announced tighter control over the Strait of Hormuz, indicating the closure of the vital energy route.
US President Donald Trump responded by stating that Tehran’s actions could not intimidate the United States by shutting down the waterway. Iran justified its actions as a response to the US blockade of its ports, considering it a breach of the ceasefire. Supreme Leader Mojtaba Khamenei affirmed that Iran’s navy was prepared to deliver “new bitter defeats” to its adversaries.
In another development, the United States reported seizing an Iranian cargo ship attempting to breach its blockade. This incident led to Tehran issuing warnings of retaliation, casting doubts on the sustainability of the ceasefire between the two nations, even for the remaining two days.
Domestically, benchmark indices Sensex and Nifty experienced negative trends with increased volatility, erasing early gains. While Asian markets displayed positive performance, with Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s KOSPI each rising by up to 1%.
In the previous trading session, US markets closed positively, with the S&P 500 concluding 1.2% higher and the Nasdaq gaining 1.52%.
