Brent Crude Holds Above $100 as US-Iran Conflict Threatens Deeper Oil Supply Disruption
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Summarized by AI; it may make mistakes. Check important info
Global oil markets flared up on Thursday as Brent crude breached $101 a barrel following a dangerous escalation between US forces and Iran along critical energy maritime routes.
The international benchmark Brent crude surged 0.68 per cent to $101.90 a barrel, while US West Texas Intermediate (WTI) jumped 1.81 per cent to touch $97.79. The surge comes straight after Tehran claimed its forces attacked 10 vessels near the Strait of Hormuz in retaliation for the US military sinking five Iranian oil tankers. Iran's Revolutionary Guard Corps has warned of even harsher measures if Washington continues its strikes.
Blockade Threat Shrinks Global Oil Transit
Ship traffic through the Strait of Hormuz—the vital choke point handling a significant chunk of global energy shipments—has plummeted to roughly a quarter of its pre-conflict volumes following a week of relentless strikes on commercial tankers.
Market analysts warn that any prolonged operational freeze in the passage will hit major Asian importers hardest, particularly India, which relies heavily on Middle Eastern crude imports to meet its daily refining needs.
Domestic Markets Feel the Pinch as MCX Futures Rise
The overseas price surge trickled directly into domestic trading floors. On the Multi Commodity Exchange (MCX), crude oil contracts opened with a gap-up, trading around Rs 9,140 per barrel—up 0.45 per cent—while testing resistance around the Rs 9,150–9,200 band.
Technical indicators suggest sustained upward momentum. Market strategists point out that a decisive move past Rs 9,200 could push MCX crude towards Rs 9,350–9,400 levels in the coming sessions. Immediate downside support currently sits at Rs 9,000–8,950. With the Relative Strength Index (RSI) hovering around 71, experts note that while the broader trend stays firmly bullish, brief periods of price consolidation remain likely if geopolitical tensions stabilise temporarily.
Global Supply Lines Face High-Stakes Test
On international desks, WTI crude traded comfortably above $96 after pulling back slightly from near $98. Traders are tracking whether WTI can break past $98, which would open the door for a push towards $100. Strong support levels are holding between $94 and $95.
Energy sector watchers expect volatility to remain elevated across Indian exchanges and international energy desks until naval escorts secure shipping lanes through the Persian Gulf.
