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Oil Soars 3% Near 52-Week High as US-Iran Tensions Stoke Supply Fears

International crude oil prices surged over 3%, with Brent nearing $111 and WTI crossing $115, as markets reacted to escalating geopolitical tensions. The rally was driven by fears of supply disruptions, particularly after a US warning to Iran regarding the Strait of Hormuz. Although OPEC+ has agreed to a modest output increase, analysts believe it will not ease near-term supply concerns. Meanwhile, the bullish sentiment in oil contrasted with domestic equity markets, which traded lower in early sessions.

Key Points: Crude Oil Prices Surge Over 3% Amid Geopolitical Tensions

  • Brent crude hits $111.23 per barrel
  • WTI surges over 11% in a single session
  • US-Iran tensions threaten Strait of Hormuz
  • OPEC+ output hike seen insufficient
  • Domestic equity markets trade in the red
2 min read

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

Brent and WTI crude oil prices climb near 52-week highs as US-Iran tensions over the Strait of Hormuz raise fears of major supply disruptions.

"The overall trend remains bullish as long as these support levels hold. - Analysts"

New Delhi, April 6

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 per cent or $2.2, to $111.23 per barrel, hovering near a 52-week high. Similarly, US West Texas Intermediate (WTI) crude gained 3.53 per cent 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 Rs 9,276, up 0.9 per cent or Rs 83. The contract touched an intraday high of Rs 9,335, rising 1.54 per cent or Rs 142.

The surge follows a sharp rally in the previous session, when WTI surged over 11 per cent and Brent climbed nearly 8 per cent - 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 per cent to 72,790, hitting an intraday low, and Nifty declining 150 points or 0.66 per cent to 22,561, logging an intraday low in early trade.

- IANS

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Reader Comments

S
Sarah B
Watching the Sensex fall in sync with this news is worrying. Our investments are taking a hit because of geopolitical issues far away. It really shows how interconnected the global economy is.
A
Arjun K
While the geopolitical tensions are a concern, this also highlights our over-dependence on imported crude. We've been talking about renewable energy and electric vehicles for years. Time to walk the talk and accelerate that transition, for both economic and environmental security. 🇮🇳
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Priyanka N
The OPEC+ increase is a drop in the ocean. 206,000 barrels won't make a dent when there are fears of a major chokepoint like the Strait of Hormuz closing. My husband drives a taxi in Mumbai, and our household budget is already stretched thin.
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Michael C
Respectfully, the analysis in the article focuses heavily on technical levels ($115 resistance, $109 support). For the average Indian, the real analysis is: how many more rupees per litre will I pay next week? That's the "key resistance zone" for family budgets.
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Kavya N
It's a vicious cycle. High oil prices → high inflation → RBI may hold or raise rates → loans get costlier → growth slows. Hope our strategic reserves and diplomatic channels can help manage this situation. Fingers crossed! 🤞

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