Crude Oil Prices Rise For Third Day As US Strikes On Iran Fuel Supply Fears

Crude oil futures continued their upward run for a third consecutive session on Wednesday, with domestic prices gaining more than 1 per cent as escalating military exchanges between the US and Iran renewed concerns over oil supplies from the Persian Gulf.

Crude oil futures for July delivery climbed Rs 105, or 1.38 per cent, to Rs 7,689 per barrel on the Multi Commodity Exchange (MCX), according to a PTI report. The contract recorded a business turnover of 10,458 lots.

The August contract also moved higher, gaining Rs 91, or 1.2 per cent, to Rs 7,665 per barrel in 8,798 lots.

Fresh US Strikes Put Strait Of Hormuz Back In Focus

Traders attributed the latest increase in crude oil prices to mounting geopolitical tensions in West Asia after the US intensified military operations against Iran.

The escalation has once again raised concerns about crude shipments through the Strait of Hormuz, a critical route for global oil trade.

Analysts said international crude prices strengthened after the US military carried out a fourth straight day of strikes targeting Tehran’s military infrastructure. Washington also reimposed a naval blockade on vessels travelling to and from Iranian ports.

The developments have brought oil supply risks back into focus after a fragile ceasefire collapsed and military exchanges resumed.

CENTCOM Details Seven-Hour Military Operation

In a statement, the US Central Command (CENTCOM) said fighter aircraft, drones and naval vessels were deployed in a seven-hour operation against Iranian military infrastructure.

According to CENTCOM, Iranian missile and drone sites, naval capabilities and coastal defence systems were targeted during the operation.

The US military said the strikes were aimed at weakening Tehran’s ability to threaten commercial shipping through the Strait of Hormuz.

The operation took place on the same day that US forces resumed a naval blockade against vessels transiting to or from Iranian ports and coastal areas, CENTCOM said.

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Iran Retaliates With Strikes On US-Linked Installations

Iran subsequently retaliated by launching strikes on US-linked military installations in Jordan and Bahrain.

The exchange has raised concerns over the possibility of the conflict expanding further across the region.

Analysts said the collapse of the fragile ceasefire and the continued military action between the two sides have intensified worries about crude supplies from the Persian Gulf.

These concerns have kept risk premiums elevated in international oil markets.

Brent Crude Climbs Above $85 Per Barrel

The impact of the latest geopolitical developments was also visible in global energy markets.

Brent crude futures for the September contract rose $1.05, or 1.24 per cent, to $85.78 per barrel on the ICE.

Meanwhile, West Texas Intermediate (WTI) crude for August delivery gained nearly 1 per cent to trade at $80.03 per barrel on the NYMEX.

Trump Withdraws Proposed Shipping Fee

Amid the latest developments, US President Donald Trump withdrew his earlier proposal to impose a fee on ships passing through the strategic shipping route.

Trump said the decision followed what he described as highly productive conversations with West Asian leaders.

However, the US President also warned that Washington could expand its military strikes to Iran’s power plants and bridges next week unless Tehran returned to the negotiating table.

Crude Supply Concerns Keep Oil Prices Elevated

Analysts said persistent military exchanges and uncertainty surrounding the Strait of Hormuz continue to influence crude oil prices.

With the Persian Gulf remaining a key source of global crude supplies, developments affecting shipping routes in the region are being closely monitored by energy markets.

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