Global Crude Price Touches 4-Week High as US-Iran Conflict Escalates
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
Global crude oil prices climbed to their highest level in four weeks on Tuesday as renewed military tensions between the United States and Iran stoked fears of disruptions to oil supplies through the Strait of Hormuz, one of the world's most critical energy shipping routes.
Key Market Moves
The sharp gains were driven by escalating Middle East tensions and growing fears of potential supply disruptions through the Persian Gulf.
Brent crude rose 2.82% ($2.35) to trade above $85 per barrel.
US West Texas Intermediate (WTI) gained nearly 3% ($2.28) to $80.42 per barrel.
MCX crude oil futures in India jumped 4.51% (₹332) to ₹7,692 during intraday trade.
The rally followed Brent crude's nearly 10% surge in the previous session—its biggest single-day gain since May 2020.
Strait of Hormuz concerns drive rally
Market sentiment turned bullish after the United States reinstated its naval blockade of Iran, while fresh military exchanges around the Strait of Hormuz heightened concerns over the uninterrupted flow of crude exports..
Analysts said crude oil is likely to remain volatile as geopolitical developments continue to dominate market sentiment.
"Crude oil prices have hit a four-week high amid the escalating Middle East conflict. The US launched its third straight night of strikes on Iran following President Donald Trump's announcements of a multi-day wave of attacks and a fresh blockade on Iranian trade in the Strait of Hormuz," analysts said.
Technical Outlook
- MCX crude oil July futures opened nearly 4% higher at ₹7,654.
- The contract is approaching an immediate resistance level of ₹7,729, which aligns with the 200-day Exponential Moving Average (EMA) on the four-hour chart.
- A breakout above ₹7,729 could strengthen bullish momentum and push prices towards the next resistance at ₹8,000.
- On the downside, immediate support is seen in the ₹7,400-₹7,260 range.
- Analysts expect crude oil prices to remain highly volatile, with geopolitical developments likely to dictate the next move.
Fresh geopolitical escalation
US President Donald Trump said Washington had reimposed its blockade of Iranian shipping and added that countries benefiting from US protection of commercial shipping through the Strait of Hormuz would be expected to compensate the United States for the operation.
Iran has responded by launching drones targeting US assets in Kuwait and firing cruise missiles at what it described as a hostile vessel.
