Geopolitical Tensions Propel Crude Oil Prices to Near-Record Levels

Crude oil prices rose on Monday, reaching near-record levels, driven by geopolitical tensions involving the US and Iran over the Strait of Hormuz. The ongoing disruption in global energy supplies has tightened conditions, with potential for further increases as negotiations remain at a standstill.

On Monday, crude oil prices witnessed an upswing, edging closer to record highs amid growing geopolitical tensions. The Multi Commodity Exchange saw May delivery prices rise by Rs 91 to Rs 9,284 per barrel as fears over US-Iran relations intensified.

President Donald Trump's warning of military action if the Strait of Hormuz remains blocked raised alarms in the energy sector. The pivotal waterway's closure has disrupted crude shipments and global energy supplies, leading to tighter market conditions.

Despite OPEC+'s pledge to boost output come May, damaged infrastructure and ongoing conflicts have cast shadows on additional supply reaching the markets. Analysts caution that if the situation persists, oil prices could climb further, potentially affecting the global economy.

(With inputs from agencies.)