Global crude oil prices surged on Monday due to rising tensions between the US and Iran following an attack on a nuclear facility in the United Arab Emirates. Brent crude, the international benchmark, increased by 2.37% to $111.86 per barrel, while US West Texas Intermediate (WTI) crude rose by 3.11% to $108.70 per barrel.
In the domestic markets, crude oil futures on the Multi Commodity Exchange (MCX) for June 18 traded at Rs 9,978, marking a 3.02% increase. The recent escalation in tensions around the Strait of Hormuz has contributed to a more than 7% climb in crude prices last week.
Further boosting oil markets, a series of drone strikes targeted the UAE and Saudi Arabia, coupled with heightened rhetoric between Washington and Tehran, raised concerns of a broader regional conflict. The UAE is investigating the attack on the Barakah nuclear power plant and has emphasized its right to retaliate against what it calls “terrorist attacks.”
US President Donald Trump, in a statement on his Truth Social platform, emphasized a firm stance on Iran, stressing the need to prevent Tehran from acquiring nuclear weapons and to reopen the Strait of Hormuz. The strait is a crucial export route for major oil and gas producers like Saudi Arabia, Iraq, and Qatar.
