Oil prices surge up to 3 pc as Strait of Hormuz disruption fuels supply concerns
New Delhi, March 17
Crude oil prices climbed nearly 3 per cent on Tuesday, rebounding from the previous session's losses as renewed concerns over supply emerged amid disruptions in the Strait of Hormuz.
Brent crude futures were trading at $103.20 per barrel, up 2.98 per cent, while US West Texas Intermediate (WTI) crude rose 3.05 per cent to $96.36 per barrel around 9:45 am.
In the previous session, Brent had settled 2.8 per cent lower, while WTI declined nearly 5 per cent, despite both benchmarks rising close to 4 per cent earlier in the day.
The Strait of Hormuz -- a key chokepoint handling about 20 per cent of global oil and liquefied natural gas trade -- has seen significant disruption due to the ongoing US-Israel-Iran conflict, now in its third week.
The situation has heightened fears of supply shortages, elevated energy prices and rising inflation.
However, on a weekly basis, oil prices remained largely stable. Brent crude was broadly flat compared to last Friday's close, while WTI traded over 1 per cent lower during the same period.
Meanwhile, the United States has secured energy agreements worth about $56-57 billion with Indo-Pacific partners, Interior Secretary Doug Burgum said, describing the move as part of efforts to strengthen energy security among allies.
The agreements were finalised during the Indo-Pacific energy security conference led by the US, with participation from countries across the region.
Separately, US Treasury Secretary Scott Bessent said Iranian oil tankers have been allowed passage through the Strait of Hormuz despite the ongoing conflict, in a bid to stabilise global energy supplies.
The Strait of Hormuz remains a critical artery for global energy trade, and any disruption poses significant risks to markets.
Asian economies, including India, remain particularly vulnerable due to their heavy dependence on crude imports from the Gulf region, according to analysts.
Additionally, domestic equity benchmarks Sensex and Nifty show high volatility in Tuesday's session.
— IANS
Reader Comments
Every time there's tension in the Gulf, we feel the pinch directly. My monthly budget for commuting is going to be ruined again. Hope the talks about diversifying our oil imports get some serious traction now.
The US making deals worth $50+ billion with Indo-Pacific partners is interesting. India should leverage its position to secure favourable long-term supply agreements and maybe even strategic reserves. This volatility is bad for business planning.
While the immediate price surge is concerning, the article notes prices are stable on a weekly basis. The markets are reacting to headlines. The US allowing Iranian tankers through is a pragmatic move to prevent a full-blown crisis.
This is the perfect wake-up call to fast-track our renewable energy goals. We can't keep being at the mercy of geopolitics in the Middle East for our energy needs. Solar and wind investment needs a massive push.
It's a bit frustrating to see the same pattern. Global conflict -> oil price spike -> inflation hits common people hardest. I respect the need for diplomacy, but our policy response often feels reactive, not proactive. We need stronger buffers.
Sensex and Nifty volatility is guaranteed with this news. The 20% figure for
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