Crude oil prices surge up to 1 pc as US-Iran tensions escalate
New Delhi, June 10
Global crude oil prices traded higher on Wednesday, increasing by up to 1 per cent after the United States launched strikes against Iranian military targets near the Strait of Hormuz, raising concerns over potential disruptions to energy supplies from the strategically important region.
International benchmark Brent crude was up about 1 per cent at $93.26 per barrel. Similarly, US West Texas Intermediate (WTI) crude gained 0.97 per cent to trade around $90 per barrel.
The latest gains came after the US military said it had carried out what it described as self-defence strikes on Iranian air defence, ground control and surveillance radar sites near the Strait of Hormuz.
According to the US Central Command, the operation was launched in response to the reported downing of a US Army Apache helicopter in the region. However, Iran denied responsibility for the incident and said the helicopter crash was accidental.
The development marks a fresh escalation in tensions between Washington and Tehran at a time when markets had been anticipating a gradual easing of hostilities in West Asia.
Investor and trader sentiment also remained weak, leading to selling pressure in global equities.
Reports claim that US crude oil inventories fell last week for an eighth consecutive week
If Israel persisted in attacking the Hezbollah militia in Lebanon, Tehran threatened to reopen hostilities.
In addition, Asian markets traded largely in the red. Japan's Nikkei and Hong Kong's Hang Seng both fell more than 1 per cent, while South Korea's KOSPI plunged nearly 4 per cent.
Wall Street ended lower on Tuesday, with the Nasdaq Composite declining 0.97 per cent and the S&P 500 slipping 0.26 per cent.
In contrast, domestic equity markets traded higher in the morning session, with benchmark indices gaining up to 0.5 per cent in early trade.
— IANS
Reader Comments
Classic geopolitical oil price manipulation. US and Iran play their games, and the whole world pays the price. Meanwhile, our government should accelerate renewable energy investments to reduce this dependency. Enough of being held hostage by oil politics! 💪
Just another day in the Middle East—but for us, it means higher prices at the pump. The government should cushion the impact by cutting excise duty temporarily. We've been paying more than Rs 100 per litre for too long, and this surge is going to make it worse.
The Strait of Hormuz is like the jugular of global oil supply. Any disruption there will hit India hard since we import most of our crude. It's high time we diversify suppliers—maybe tap more from Russia or Africa. Or better, push for electric vehicles aggressively! 🚗⚡
I understand the market jitters, but the Indian stock market actually rising shows our resilience. Still, the government should negotiate with oil-producing nations for a strategic reserve buffer. We can't keep getting squeezed by every conflict in West Asia. 🇮🇳
This is why India must accelerate its renewable energy transition and also invest in alternative fuels like ethanol blending. The last thing we need is another oil shock while our economy is trying to recover. Sensible policy is needed, not just knee-jerk reactions. ❌🛢️
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