Oil prices hit five-week high; Brent crude touches USD 92 amid US-Iran tensions
New Delhi, July 22
Brent crude prices hit USD 92 per barrel on Wednesday, climbing to a five-week high amid intensifying geopolitical tensions between the US and Iran.
Brent crude futures rose 50 cents, or 0.55 per cent, to USD 91.51 a barrel, while US West Texas Intermediate (WTI) crude futures gained 30 cents, or 0.36 per cent, to USD 84.64 a barrel after markets opened.
At the time of reporting, Brent crude was trading at around USD 92.01 per barrel while crude oil was trading at around USD 85.21 per barrel.
The United States Central Command (CENTCOM) said on Tuesday (local time) that it had completed its 11th consecutive night of strikes on Iran, targeting military operation centres, maritime capabilities, aircraft hangars, drone storage facilities and military logistics infrastructure.
In a statement, CENTCOM said the operation concluded at 8:15 pm ET on July 21 and was aimed at further degrading Iran's ability to threaten commercial shipping in the Strait of Hormuz.
"At 8:15 p.m. ET on July 21, U.S. Central Command (CENTCOM) successfully completed the 11th consecutive evening of strikes against Iran," the statement reads.
Market analyst Ajay Bagga noted, "Oil prices climbed to a five-week high, on worries that energy supply disruptions could worsen in the Middle East due to more attacks between the U.S. and Iran and a threatened naval blockade of Saudi Arabia by Yemen's Houthis."
Bagga highlighted three major disruptions hitting oil markets together --Strait of Hormuz closure, the Houthis ' announcement of a maritime blockade of Red Sea shipments, and the Caspian export hub in the Black Sea suspending operations after tankers were hit there in the Ukraine-Russia conflict, impacting 1.6 mbpd of Kazakh oil evacuation.
Bagga further noted, "Brent at USD 92 is still showing complacency in the face of these factors hitting global oil markets all together," adding, "The hope trade is of a temporary truce in US-Iran war."
However, he flagged, "A US attack on the Iranian mountain site said to hold Iranian nuclear material could escalate the conflict further."
"The situation is too volatile and could go either way based on decisions made by the US and Iranian leadership," Bagga noted.
— ANI
Reader Comments
Brent touching $92 is scary. We already pay among the highest fuel taxes in the world. Why can't our government cut excise duty when global prices spike? Seems like they're always eager to collect revenue but never give relief. 😕
This is where India's over-dependence on oil imports hurts us. We need to accelerate renewables and electric vehicles. But our policies are so slow... Meanwhile, the Middle East keeps burning. Hope government has some strategic reserves ready. 😑
As someone who travels daily for work in Mumbai, this is worrying. My commute costs could go up 10-15% easily if this continues. And the auto-rickshaw wallah will pass the burden to us. Can't the government negotiate separate supply deals with Russia or Saudi? 🤔
Strait of Hormuz and Red Sea disruptions together? That's like a nightmare scenario for global trade. India gets 80% of oil from Middle East. We should push for diplomatic solution instead of just watching from sidelines. But who listens to India in these matters? 😞
It's not just fuel. Everything from food to clothing will get expensive because transport costs rise. Inflation is already hurting the poor. Hope this doesn't trigger another crisis like 2022. The global economy is too fragile for oil at $100+. 🥺
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