Crude Oil Prices Soar 2% Above $100 as Middle East Tensions Spike

The global oil benchmark Brent crude advanced about 2 per cent to $107 per barrel, while US West Texas Intermediate (WTI) crude increased nearly 2 per cent to $97.6 from the previous close.

In the domestic market, crude oil on the Multi Commodity Exchange (MCX) was trading at Rs 9,077, down 1 per cent or nearly Rs 100.

This week, Brent crude has jumped as much as 18.83 per cent to trade around the $107 mark so far against the previous Friday's closing. Similarly, US WTI has witnessed a 17 per cent gain during the week.

Commodity experts said that ongoing disruptions in the Strait of Hormuz continue to fuel volatility, keeping the near-term bias cautiously bullish.

For global oil commodities, they said immediate resistance is seen at $99, and a sustained breakout could extend gains towards $104.50, with further upside potential up to $110, adding that on the downside, $95 remains key support, while $90.80-$88.50 acts as a stronger base.

Though the overall bias remains cautiously bullish, contingent on geopolitical developments, the experts noted.

Moreover, US President Donald Trump has reportedly stated that he would not use a nuclear weapon in the war against Iran.

"Why would I use a nuclear weapon? We've totally, in a very conventional way, decimated them without it," Trump told media at the White House.

However, reports also claim that the US President has ordered the military to intensify action in the region, including operations targeting Iranian small boats near the Strait of Hormuz, further escalating tensions in the key shipping route.

Separately, a report suggested that Israel and Lebanon have extended their ceasefire by three weeks.

The Strait of Hormuz -- through which about 20 per cent of global oil trade passes -- remains a critical flashpoint as military activity and maritime disruptions raise concerns over supply stability.

On the equities front, domestic frontline indices Sensex and Nifty traded up to 1 per cent lower in early trade amid selling pressure in IT and pharma stocks.

- IANS