Crude oil prices climb over 3% to near 52-week high amid geopolitical tensions

International crude oil prices traded higher on Monday as persistent fears of supply disruptions in West Asia kept markets on edge, with the ongoing US-Israel-Iran conflict weighing on sentiment. 

Brent crude futures rose as much as 2.01%or $2.2, to $111.23 per barrel, hovering near a 52-week high. Similarly, US West Texas Intermediate (WTI) crude gained 3.53%or about $4 to $115.48 by 10.20 am.

On the domestic front, crude oil futures on the Multi Commodity Exchange (MCX) (May 18 contract) were trading at ₹9,276, up 0.9%or ₹83. The contract touched an intraday high of ₹9,335, rising 1.54%or Rs 142.

The surge follows a sharp rally in the previous session, when WTI surged over 11%and Brent climbed nearly 8%— their biggest single-day gains since 2020 — amid escalating geopolitical tensions.

Analysts said crude oil continues to remain a key driver for markets, with prices holding firm amid ongoing supply concerns.

Globally, US crude is trading near the $110–$112 range, close to a key resistance zone. According to them, a breakout above $115 could trigger a rally towards $118–$120 levels.

“On the downside, a fall below $109 may lead to a correction towards $106, with strong support placed around $100–$102. The overall trend remains bullish as long as these support levels hold,” they added.

Tensions intensified after US President Donald Trump warned of severe consequences if Iran fails to reopen the Strait of Hormuz by his Tuesday deadline, raising concerns over potential disruptions to global oil supplies.

OPEC+ has agreed to increase output by 206,000 barrels per day in May. However, the move is unlikely to significantly ease supply concerns in the near term.

Meanwhile, domestic equity markets traded in the red, with the Sensex falling 529 points or 0.72%to 72,790, hitting an intraday low, and Nifty declining 150 points or 0.66%to 22,561, logging an intraday low in early trade.

(This story was taken from syndicated feed and was only edited for style by Gujarat Samachar Digital team)