Global crude oil prices rose over 3% to surpass $90 per barrel on Monday due to escalating military tensions between the United States and Iran, raising concerns about supply disruptions through the Strait of Hormuz.
Brent crude, the international benchmark, climbed nearly 3% to trade above $90 a barrel after a more than 3% increase in the previous session. Similarly, US West Texas Intermediate (WTI) crude also surged by 3.51% to around $85.39 a barrel.
In the domestic market, MCX crude oil futures for August jumped 2.65% or Rs 210 to reach an intraday high of Rs 8,120 as of 10:29 am.
The surge in prices followed recent military clashes between the US and Iran, with Tehran stating that the ceasefire between the two nations had effectively collapsed, leading to worries about potential disruptions in crude shipments through the Strait of Hormuz.
Market experts predict that crude oil prices will likely remain elevated in the near term due to escalating tensions in the Middle East and concerns about shipping disruptions through the Strait of Hormuz, which are influencing market sentiment.
Experts noted that MCX crude has broken above the Rs 8,000 level, indicating strong bullish momentum. The short-term outlook for both domestic and global crude oil remains cautiously bullish, although high prices could trigger consolidation phases.
Maritime security concerns heightened after Iran’s navy reported stopping four unidentified vessels trying to pass through an unsafe route in the Strait of Hormuz. Two vessels were involved in accidents and stopped, while the others turned back, raising worries about the security of this vital energy shipping route.
