West Asia Tensions Push Crude Oil Prices Above $100

Crude oil prices surged due to heightened tensions in West Asia, affecting the supply chain through the Strait of Hormuz. Despite U.S.-led diplomatic efforts for resolution, the market remains volatile amid further potential conflict and international initiatives to stabilize oil shipments.

Crude oil prices saw an increase of Rs 119 to reach Rs 9,171 per barrel in futures trading on Monday, spurred by escalating tensions in West Asia that have heightened supply risks. The United States has been exploring options to restore shipping around the Strait of Hormuz, a critical passage for global energy transportation.

The Multi Commodity Exchange (MCX) recorded a rise in crude oil for March delivery by Rs 119, or 1.31%, with 12,745 lots in business turnover. Similarly, April contracts rose by Rs 164, 1.83%, to Rs 9,107 per barrel in 12,898 lots. Analysts note that supply concerns persist as West Asia's ongoing conflict continues to disrupt vital oil flows.

In a global context, Brent Oil futures for May delivery increased by USD 2.82, or 2.73%, to USD 105.96 per barrel. Meanwhile, West Texas Intermediate (WTI) crude rose 2.36% to USD 99.13 per barrel in New York. Diplomatic efforts, including potential coalition talks led by the US, aim to alleviate this shipping disruption, but the volatile geopolitical climate sustains an elevated market sentiment.

(With inputs from agencies.)