Global crude oil prices remained elevated on Friday, with trading above the $100-per-barrel mark amid escalating geopolitical tensions in the Gulf, raising concerns over global energy supplies.
International benchmark Brent crude rose 0.43 per cent or 44 cents to remain above the $100-a-barrel level, while US West Texas Intermediate (WTI) crude gained 0.69 per cent or 64 cents to $92.83 a barrel.
In the domestic market, crude oil futures for August delivery on the Multi Commodity Exchange (MCX) were trading at Rs 8,865 per barrel, down Rs 159, or 1.76 per cent, at around 10 a.m.
According to market experts, oil prices spiked after Iran-backed Houthi forces attacked Saudi tankers in the Red Sea, opening a new front alongside continued disruptions in the Strait of Hormuz — two of the world’s most critical oil transit routes.
“The attack on Saudi tankers by the Iran-backed Houthis in the Red Sea is the main reason for the recent sharp spike in Brent crude to about $100,” experts said, adding that renewed geopolitical tensions and fading hopes of a ceasefire have reignited fears of persistent inflation.
The rally in crude comes as the conflict in the region continues to intensify. Two weeks after the effective collapse of an interim truce, the US launched fresh air strikes on Iran, while Tehran reportedly fired missiles at neighbouring Arab countries hosting US military bases, fuelling concerns over prolonged supply disruptions.
The sharp rise in oil prices also weighed on global equity markets. In Asia, Japan’s Nikkei tumbled around 3 per cent, Hong Kong’s Hang Seng slumped more than 3 per cent, while South Korea’s KOSPI plunged over 5 per cent.
Overnight, Wall Street ended lower, with the S&P 500 slipping 1.21 per cent and the Nasdaq declining 2.15 per cent amid concerns that elevated energy prices could keep inflation higher for longer.
