Global crude oil prices rally up to 3 pc as US-Iran tensions escalate
New Delhi, May 18
Global crude oil prices extended gains on Monday as escalating tensions between the US and Iran fuelled concerns over supply disruptions after a nuclear facility in the United Arab Emirates was attacked.
International oil benchmark Brent crude rose as much as 2.37 per cent or $2.60 to $111.86 per barrel.
Meanwhile, US West Texas Intermediate (WTI) crude advanced 3.11 per cent, or $3.28, to $108.70 per barrel.
In the domestic markets, crude oil futures (June 18) on Multi Commodity Exchange (MCX) traded at Rs 9,978, an increase of 3.02 per cent or around Rs 300.
Crude prices had already climbed more than 7 per cent last week as hopes for a peace agreement weakened and tensions around the Strait of Hormuz escalated amid continued attacks and territorial seizures.
Oil markets gained further after a fresh wave of drone strikes targeted the UAE and Saudi Arabia, while escalating rhetoric from Washington and Tehran fuelled fears of a wider regional conflict.
Reports claim that UAE authorities said they were investigating the source of the strike on the Barakah nuclear power plant and asserted the country's right to respond to what it described as "terrorist attacks".
US President Donald Trump also signalled a tougher stance on Iran, saying he had agreed with Chinese President Xi Jinping that Tehran must not be allowed to develop nuclear weapons and should reopen the Strait of Hormuz.
Nearly one-fifth of global oil and liquefied natural gas shipments pass through the Strait of Hormuz, making it a key export route for major producers such as Saudi Arabia, Iraq and Qatar.
In a post on his Truth Social platform, Trump warned Iran that "the clock is ticking", signalling growing pressure on Tehran amid stalled diplomatic efforts.
Meanwhile, Asian equity markets traded mostly lower, with Japan's Nikkei falling around 1 per cent and Hong Kong's Hang Seng declining over 1 per cent, while South Korea's KOSPI gained nearly 1 per cent.
— IANS
Reader Comments
What worries me is that Strait of Hormuz is such a critical chokepoint for our energy security. We get a huge chunk of our oil from the Gulf region. If that route gets blocked, it's not just petrol prices - everything from food to manufacturing will become expensive. India needs to diversify and ramp up renewables fast. 💭
Jaw dropping how much impact geopolitics has on our daily lives. Rs 9,978 per barrel on MCX - that's insane! I remember when crude was around $30 during COVID. Now we're talking $110+ with threats of more escalation. And nobody talks about the environmental cost of all this either. India should push for electric vehicles more aggressively.
Honestly, both sides are playing dangerous games. Trump's warning that 'clock is ticking' and drone strikes on UAE nuclear plant - this isn't a movie script. But I feel for our auto-rickshaw drivers and small business owners who can't afford these price hikes. The government should cut excise duty temporarily to give relief. 🛺
As an expat living in India, this hits differently. I see how even a small rise in fuel prices affects everything from vegetable prices to Uber rides. The industry here is fragile. I hope cooler heads prevail in the Middle East because nobody wants another war - not the people there, not the global economy. 🕊️
Interesting how the markets react immediately but the actual impact takes weeks. While Brent jumped 2.37%, it's the uncertainty that's worse. Indian refineries might have to look for alternate suppliers from Africa or Americas if this continues. But that'll push
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