Daijiworld Media Network - New Delhi
New Delhi, Jul 20: Global crude oil prices climbed sharply on Monday, with the international benchmark Brent crude crossing the $90-per-barrel mark as renewed military tensions between the United States and Iran heightened fears of disruptions to oil supplies through the strategically vital Strait of Hormuz.
Brent crude gained nearly 3 per cent, rising by about $2.63 to trade above $90 a barrel after registering a similar increase in the previous trading session. US benchmark West Texas Intermediate (WTI) crude also advanced strongly, climbing 3.51 per cent, or around $3, to reach $85.39 a barrel.
The upward trend was mirrored in the domestic market, where MCX crude oil futures for August delivery rose 2.65 per cent, or Rs 210, touching an intraday high of Rs 8,120 by 10:29 a.m.
The rally followed fresh military exchanges between Washington and Tehran over the weekend. Iran declared that the ceasefire between the two countries had effectively collapsed, raising concerns that hostilities could disrupt crude oil shipments passing through the Strait of Hormuz, one of the world's busiest energy transit routes.
Meanwhile, the US Central Command said American forces had carried out a ninth consecutive night of strikes on Iranian targets. According to the US military, the operations were intended to weaken capabilities allegedly linked to attacks on commercial and civilian vessels operating in the region.
Market analysts said crude oil prices are likely to remain firm in the near term as geopolitical tensions and concerns over the security of global energy supply routes continue to support bullish sentiment.
Experts noted that MCX crude oil has moved above the key Rs 8,000 level, indicating sustained buying interest. However, they cautioned that the recent sharp gains could also lead to intermittent phases of profit-booking and price consolidation.
Adding to market anxiety, Iran's navy reported that it intercepted four unidentified vessels attempting to navigate what it described as an unsafe route through the Strait of Hormuz. According to reports, two of the vessels were involved in accidents and came to a halt, while the remaining ships reportedly turned back, further intensifying concerns over the safety of one of the world's most critical oil shipping corridors.