New Delhi: Global crude oil prices surged more than 3 per cent, climbing above the $90-a-barrel mark on Monday as escalating military tensions between the United States and Iran fuelled fears of supply disruptions through the Strait of Hormuz.
International benchmark Brent crude rose nearly 3 per cent or $2.63 to trade above $90 a barrel after gaining more than 3 per cent in the previous session.
Similarly, US West Texas Intermediate (WTI) crude advanced 3.51 per cent or around $3 to $85.39 a barrel.
In the domestic market, MCX crude oil futures (August ) climbed 2.65 per cent or Rs 210 to an intraday high of Rs 8,120 as of 10:29 am.
The rally followed fresh military exchanges between the US and Iran over the weekend, with Tehran declaring that the ceasefire between the two countries had effectively collapsed, raising concerns over potential disruptions to crude shipments through the Strait of Hormuz.
The US Central Command said American forces carried out a ninth consecutive night of strikes on Iranian targets, describing the operation as aimed at weakening military capabilities allegedly used in attacks on commercial and civilian shipping.
According to market experts, crude oil prices are likely to remain supported in the near term as escalating tensions in the Middle East and concerns over shipping disruptions through the Strait of Hormuz continue to underpin sentiment.
“MCX crude has broken above the Rs 8,000 level, reflecting strong bullish momentum. The near-term bias for both domestic and global crude remains cautiously bullish, although elevated prices may trigger phases of consolidation,” the experts said.
Maritime security concerns also intensified after Iran’s navy said it stopped four unidentified vessels attempting to pass through what it described as an unsafe route in the Strait of Hormuz.
Reports claim that two of the vessels were involved in accidents and halted, while the remaining ships turned back, adding to concerns over the security of one of the world’s key energy shipping corridors.
(IANS)
