Daijiworld Media Network - Mumbai
Mumbai, Apr 23: Global crude oil prices rose sharply on Thursday as uncertainty deepened over stalled peace talks between the United States and Iran, keeping the strategic Strait of Hormuz effectively shut and intensifying concerns over energy supply disruptions.
Benchmark crude contracts saw strong gains in early trade. Brent crude for June delivery on the Intercontinental Exchange climbed to $103.35 per barrel, up nearly 4 percent from the previous close. West Texas Intermediate (WTI) futures on the NYMEX also advanced 1.62 percent to $94.47 per barrel.
The spike comes amid a prolonged geopolitical standoff, with the United States maintaining pressure on Iran through naval restrictions. According to US Central Command, 31 vessels have been instructed to turn back or return to port as part of the ongoing blockade.
Although US President Donald Trump extended a ceasefire timeline pending a “unified proposal” from involved parties, he has not lifted the maritime restrictions on Iran, leaving the strait closed for more than 50 days. The disruption has reportedly affected nearly one-fifth of global oil and gas flows.
Market analysts warned that sustained price increases could significantly impact import-dependent economies such as India, raising concerns over inflation and trade deficits. However, domestic fuel retail operations in India have so far remained stable.
The situation has been further complicated by diplomatic tensions, with Iranian negotiators reportedly boycotting upcoming talks, calling them unproductive. US Vice President JD Vance is said to have postponed participation in the discussions amid the deadlock.
Meanwhile, Iran has reportedly seized two commercial vessels in the Strait, adding to maritime instability in the region.
Amid the disruption, the Indian-flagged crude tanker Desh Garima, carrying 31 Indian crew members, safely arrived in Mumbai after transiting the contested waters.
India’s crude import benchmark basket, which includes a mix of Brent, Oman, and Dubai crude, was priced at $102.46 per barrel as of April 21, with April’s average already elevated at $115.8 per barrel, reflecting continued volatility in global energy markets.