Crude oil jumps on West Asia tensions; Brent nears $117 on supply fears
ADVERTISEMENT
Crude oil prices rose in futures trade on Thursday amid escalating geopolitical tensions in West Asia and growing concerns over supply disruptions. On the Multi Commodity Exchange (MCX), crude oil for April delivery climbed ₹74, or 0.82%, to ₹9,067 per barrel, with a business turnover of 19,221 lots.
In the global market, Brent crude futures for May delivery surged by $9.61, or nearly 9%, to $116.99 per barrel. West Texas Intermediate (WTI) crude for the same contract rose 1.58% to $96.97 per barrel in New York.
Analysts attributed the sharp rally to fresh attacks on key energy infrastructure in the Middle East, which have heightened fears of a tightening global supply.
Energy infrastructure hit
Qatar said Iranian missile strikes caused extensive damage to its main gas facility at Ras Laffan, while Kuwait reported that two of its oil refineries were hit.
According to Hareesh V, Head of Commodity Research at Geojit Investments Ltd., crude prices gained after a strike on Iran’s major gas facility and subsequent retaliatory threats targeting Gulf energy assets, further straining an already fragile supply chain. He added that the situation has delayed the reopening of the Strait of Hormuz, which continues to face restrictions amid rising security risks.
Global uncertainty persists
Meanwhile, US President Donald Trump said the US had no prior knowledge of the Israeli strike on Iran’s South Pars gas field and urged restraint to prevent further escalation in the region.
Analysts noted that Saudi Arabia is facing export challenges due to continued uncertainty around the Strait of Hormuz, despite Iran allowing limited vessel movement.
Prices may rise further
Market participants warned that crude prices could climb further if disruptions persist. With Brent already above $110 per barrel, renewed supply shocks could push prices towards $120 or higher, analysts said, adding that the risk premium in oil markets is likely to remain elevated until there is clear de-escalation in the region.
Meanwhile, the government has identified 22 India-bound vessels that require monitored evacuation and secure passage through the Strait of Hormuz, as tensions in West Asia disrupt key maritime routes, according to media reports. Of these, 20 ships have been classified as critical for maintaining the country’s energy supplies.
The priority vessels are carrying significant fuel cargo, including around 215,000 metric tonnes of LNG, 321,000 tonnes of LPG, and nearly 1.68 million tonnes of crude oil. The fleet comprises both Indian-flagged and foreign-flagged ships, all en route to Indian ports.