Global crude oil prices increased on Friday due to fresh attacks on Saudi energy infrastructure and ongoing worries about disruptions in the Strait of Hormuz. The international benchmark Brent crude futures went up by 1.13% to $97.01 per barrel, while US West Texas Intermediate (WTI) traded at $99.24 early in the day, marking a 1.39% rise. Oil prices had recently dropped to nearly 20% below the $100-per-barrel level after maintaining that range since February 28.
The Multi Commodity Exchange (MCX) reported that crude oil futures for April 20 delivery were trading at Rs 9,222 around 10 am, showing an intraday increase of Rs 289 or 3.23%. The surge in prices is linked to uncertainties surrounding the US-Iran ceasefire, with Israel conducting strikes in Lebanon and Iran closing the Strait of Hormuz. Shippers are seeking clarity on the ceasefire terms before resuming transit through this crucial route.
US President Donald Trump warned of potential military action on a larger scale if the ceasefire terms are violated, emphasizing that Iran cannot have nuclear weapons and ensuring the security of the Strait of Hormuz with US forces on standby. Shipping operations through the Strait of Hormuz have been significantly disrupted, operating at less than 10% of normal levels on Thursday.
The Asian Development Bank (ADB) anticipates that oil prices will stay elevated in the short term but could stabilize gradually if geopolitical tensions ease. In the Indian stock market, both the Sensex and Nifty indices showed a 1% gain in early trading on Friday.
