Crude Oil Prices Surge Amid Escalating US-Iran Tensions

Crude oil futures experienced a significant increase, rising by over 3% to Rs 8,536 per barrel in futures trading. This reversal came on the heels of intensified US-Iran military exchanges, prompting fears of potential supply interruptions in the Middle East.

The June contract, which saw the most activity, climbed by Rs 255 to Rs 8,536 per barrel, signaling a break from a three-day downward streak. Analysts believe that investors are factoring in increased geopolitical risks, especially after the latest military strikes by the US on Iranian sites following the shooting down of an American drone.

The developments have reignited worries over energy security, particularly concerning the Strait of Hormuz, a critical corridor for global oil shipments. Moreover, the possibility of escalated tensions in the region was underscored by reports of Iraq and Israel expanding military operations.

Globally, oil benchmarks like Brent and West Texas Intermediate also recorded gains, reflecting investor anxiety over regional stability. These price movements mark a stark contrast from last week when hopes for a US-Iran agreement appeared to dampen market volatility.

(With inputs from agencies.)