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Global Crude Prices Rise 0.73% as US-Iran Talks Stall Amid Strait Crisis

Crude oil prices rose 0.73% on Friday as US-Iran talks reached a stalemate, with Iran continuing to block the Strait of Hormuz. Brent futures for July gained $0.81 to $111.21 a barrel, while West Texas Intermediate rose to $105.37. Fed Chair Jerome Powell warned that rising oil prices from the Middle East conflict are boosting inflation and complicating policy. In India, the price of a 19-kg commercial LPG cylinder was increased by Rs 993 to Rs 3,071.5 in Delhi.

Key Points: Crude Oil Prices Rise 0.73% on US-Iran Stalemate

  • Crude oil prices rose 0.73% as US-Iran talks stalled
  • Iran continues to block Strait of Hormuz
  • Brent crude hit $126.41, highest since March 2022
  • Commercial LPG cylinder price hiked by Rs 993 in Delhi
2 min read

Global crude prices rise 0.73 pc as US-Iran talks stall

Brent crude up 0.73% to $111.21 as Iran blocks Strait of Hormuz. Fed warns of inflation risks. LPG prices hiked in India.

"It was unrealistic to expect quick outcomes from negotiations with the US - Esmaeil Baghaei"

New Delhi, May 1

Crude oil prices rose on Friday as efforts to resolve the Iran crisis reached a stalemate, with Tehran continuing to block the Strait of Hormuz and Washington restricting Iranian crude exports.

Brent futures for July on Intercontinental Exchange gained $0.81, or 0.73 per cent, to $111.21 a barrel, while West Texas Intermediate rose 31 cents, or 0.30 per cent, to $105.37. Both benchmarks have posted gains for four consecutive months, analysts noted.

Brent crude oil had crossed $120 per barrel for the first time in 4 years, heightening inflation concerns and putting pressure on global markets.

Market participants flagged new supply concerns after Brent's June contract, which expired on Thursday, hit $126.41 a barrel, its highest level since March 2022.

British and European central banks cautioned about rising inflation, while the United States is working towards a coalition of allied countries and shipping companies to ensure secure transit through Hormuz.

A ceasefire though in effect since April 8 felt shaky, as on Thursday evening, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said it was unrealistic to expect quick outcomes from negotiations with the US, according to multiple reports.

Fed Chair Jerome Powell has warned that rising oil prices due to the Middle East conflict are boosting inflation and complicating policy. Asia faces greater economic risks from the energy shock, he added.

The price of a 19-kg commercial LPG cylinder has been increased by Rs 993, starting Friday, and after the revision, a 19-kg cylinder will now cost Rs 3,071.5 in Delhi.

However, there has been no change in the price of domestic LPG cylinders for 33 crore users, the Indian Oil Corporation (IOC) said in a statement.

This is the third time that the price of a 19-kg commercial LPG cylinder has been increased since February 28, when the US-Israel and Iran war began.

- IANS

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Reader Comments

A
Arjun K
All this tension in the Gulf directly affects our pockets. Petrol, diesel, and now LPG—everything is getting expensive. Behtarin hai ki domestic LPG price nahi badha, but common man still suffers because transport costs will rise. Government should tap into strategic reserves and negotiate with both sides for peace.
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Sneha F
Why is the world always held hostage by conflicts in the Middle East? India imports most of its oil from there, and as usual, we are paying the price. I appreciate the strategic focus on diversifying energy sources to solar and wind—maybe we should accelerate that push now.
R
Rohit P
$120+ a barrel for Brent is insane. The global economy hasn't fully recovered from the pandemic, and now this. Inflation toh pakki hai. Fed and RBI should coordinate better. But seeing the way Iran and USA are posturing, this stalemate might last months. Let's hope India's diplomatic channels work some magic.
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Kavya N
The ceasefire since April 8 feels fragile indeed, and the LPG price hike for commercial cylinders is a clear indicator of how these tensions impact daily life here. While the government protected domestic users, businesses face another blow. Will this lead to price spikes for food and other essentials? Very concerning.
D
Deepak U
India should seriously consider ramping up electric vehicles and public transport. High oil prices are a wake-up call for our energy security. But kya karein, industries and logistics rely on fuel. At least domestic LPG is safe for now, but restaurants and hotels are going to struggle with these repeated price hikes.

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