Oil rebounds nearly 4 pc as US-Iran tensions fuel supply fears
New Delhi, May 28
Global oil prices rebounded nearly 4 per cent on Thursday after declining sharply in the previous session, as fresh US military strikes on Iran revived concerns over supply disruptions while uncertainty persisted over the future of the Strait of Hormuz.
International benchmark Brent crude rose 3.83 per cent to trade at $97.91 per barrel. Similarly, US benchmark West Texas Intermediate (WTI) traded around 4 per cent higher at nearly $92 per barrel, recovering part of Wednesday's losses.
Reports suggested that US forces carried out defensive airstrikes on a military site in Iran and intercepted drones targeting a commercial vessel while also striking a launch unit. The latest military action comes as Washington and Tehran remain divided over efforts to reopen the Strait of Hormuz.
US President Donald Trump said he remained dissatisfied with the ongoing negotiations and rejected reports suggesting Tehran and Oman could jointly oversee the waterway.
"The strait's going to be open to everybody," Trump said, adding that the US would continue monitoring the route.
However, negotiations remain complicated by disagreements surrounding Iran's nuclear programme and Tehran's demand to retain control over Hormuz, which remains under restrictions imposed by both sides.
However, Trump reiterated that Washington would not agree to a weak deal and signalled that sanctions relief remained off the table, conflicting with Tehran's demand for financial relief and an end to military attacks.
Oil prices fell sharply on Wednesday, sliding more than 5 per cent to their lowest levels in over a month as investors awaited clarity on a possible framework agreement aimed at ending the conflict in West Asia.
Brent crude settled down $5.29, or 5.31 per cent, at $94.29 a barrel, while US West Texas Intermediate (WTI) crude declined $5.21, or 5.55 per cent, to close at $88.68 a barrel.
In addition, both benchmarks touched their lowest levels in a month during the session and recorded their weakest settlements since April 17. The decline also erased Brent's gains from Tuesday's session.
— IANS
Reader Comments
Honestly, these US-Iran tensions always affect our economy. We import so much oil, yet our government keeps delaying the electric vehicle transition. How long will we remain hostage to global oil politics? 🚗🔋
The Strait of Hormuz is a choke point for the entire world. India should play a mediator role, have good ties with both Iran and US. Otherwise we'll keep getting squeezed every time someone fires a missile. Our foreign ministry needs to be more proactive.
I remember when petrol was ₹70 per litre. Now it's ₹105+ and rising again. This yo-yo effect of oil prices due to geopolitical games is ridiculous. The government must give tax relief on fuel immediately! 🙏
This is why we need the India-Middle East-Europe Corridor and greater energy independence. But while our leaders talk big, the common man ends up paying more for LPG cylinders and travel. A clear strategy is needed, not just reactive statements.
Trump's negotiating style is so unpredictable. One day he talks peace, next day airstrikes. Meanwhile, India's fuel prices go up and down like a seesaw. I feel bad for auto-rickshaw drivers especially. They can't keep up with this volatility. 🚖
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