International crude oil prices continued to trade firm on Monday as concerns over supply disruptions in West Asia persisted, with the ongoing conflict involving the United States, Israel and Iran weighing heavily on global market sentiment.
Both major crude benchmarks moved higher during early trade, reflecting continued uncertainty around supply chains and shipping routes linked to the region, reported IANS.
Crude Prices Hover Near Multi-Month Highs
Brent crude futures rose as much as 2.01 per cent, or $2.2, to $111.23 per barrel, staying close to a 52-week high. Meanwhile, US West Texas Intermediate (WTI) crude gained 3.53 per cent, or about $4, to $115.48 per barrel by 10:20 AM.
The upward movement comes after a sharp rally in the previous session, where WTI surged over 11 per cent, and Brent climbed nearly 8 per cent, marking their biggest single-day gains since 2020.
The sustained rise in crude prices reflects ongoing concerns that geopolitical tensions could continue to disrupt supply flows from West Asia, a region that plays a critical role in global energy markets.
Domestic Crude Futures Also Move Higher
The impact of rising global oil prices is also visible in India’s domestic commodity markets.
Crude oil futures on the Multi Commodity Exchange (MCX) for the May 18 contract were trading at Rs 9,276, up 0.9 per cent or Rs 83. During the session, the contract touched an intraday high of Rs 9,335, rising 1.54 per cent or Rs 142.
The movement in MCX crude prices closely mirrors global trends, underlining how international developments continue to influence domestic commodity markets.
Strait Of Hormuz Remains A Key Concern
At the heart of current market volatility is the Strait of Hormuz, one of the world’s most important oil transit routes.
The narrow waterway connects the Persian Gulf to global markets and handles a significant share of global crude shipments. Any disruption to this route has immediate implications for supply, pricing and energy security worldwide.
Recent developments in the region have heightened fears that shipping could be further disrupted, tightening supply and keeping prices elevated.
Analysts note that even temporary interruptions in flows through the Strait of Hormuz can trigger sharp price movements, as markets react quickly to perceived risks.
Technical Levels Suggest Further Upside Risks
Market analysts believe crude oil remains in a bullish phase, supported by strong underlying supply concerns.
Globally, US crude is trading in the $110-$112 range, which is considered a key resistance zone. According to analysts cited in the IANS report, a sustained breakout above $115 could push prices further towards the $118-$120 range.
On the downside, a fall below $109 may trigger a correction towards $106, while strong support is seen around the $100-$102 levels.
Despite potential short-term corrections, the overall trend remains positive as long as these support levels hold, analysts said.
Trump Warning Adds To Supply Concerns
Geopolitical tensions escalated further after US President Donald Trump warned of “severe consequences” if Iran fails to reopen the Strait of Hormuz by a specified deadline.
The warning has intensified concerns over potential disruptions to global oil supplies, reinforcing bullish sentiment in crude markets.
The possibility of prolonged restrictions on shipping through the Strait has emerged as one of the most significant risks for global energy markets at present.
OPEC+ Output Increase Offers Limited Relief
In an attempt to stabilise supply, OPEC+ has agreed to increase output by 206,000 barrels per day in May.
However, analysts believe that the increase is unlikely to meaningfully ease supply pressures in the near term, particularly if disruptions in the Middle East persist.
The modest scale of the output hike, compared to the potential supply risks arising from geopolitical tensions, means that markets are likely to remain sensitive to further developments.
Analysts continue to view crude oil as a central factor influencing global financial markets at present. With supply risks tied closely to geopolitical developments, oil prices are likely to remain volatile in the near term.
