Crude oil tops $100 as West Asia tensions push prices higher

International crude oil prices climbed sharply on Friday, rising by up to 2 per cent as escalating tensions in the West Asia continued to unsettle global markets, despite reports of a unilateral ceasefire announcement by the United States.

The global benchmark Brent crude advanced to around $107 per barrel, while West Texas Intermediate (WTI) approached $97.6, both registering gains of nearly 2 per cent from the previous close.

In India, crude oil futures on the Multi Commodity Exchange (MCX) were trading lower at Rs 9,077, down about 1 per cent.

For the week, oil prices have surged significantly, with Brent rising nearly 19 per cent and WTI gaining around 17 per cent, reflecting heightened concerns over supply disruptions.

Analysts attributed the rally to continued instability around the Strait of Hormuz, a critical route through which roughly a fifth of global oil trade passes. Ongoing military activity and shipping disruptions in the region have kept market sentiment on edge.

Experts noted that while the near-term outlook remains cautiously bullish, price movements will largely depend on geopolitical developments. Resistance levels are seen near $99, with the potential to climb further towards $110 if upward momentum sustains. On the downside, $95 is viewed as a key support level.

Adding to the uncertainty, Donald Trump said he would not deploy nuclear weapons in any conflict involving Iran, while also indicating that conventional military operations in the region could intensify. Reports suggest increased US activity targeting Iranian vessels near the Strait of Hormuz.

Separately, there were indications that a ceasefire between Israel and Lebanon had been extended by three weeks, offering limited relief to markets.

The rise in oil prices also weighed on domestic equities, with the BSE Sensex and Nifty 50 trading up to 1 per cent lower in early deals, dragged down by losses in IT and pharmaceutical stocks.

With geopolitical risks persisting, oil markets are expected to remain highly sensitive to developments in the region in the coming days.

With IANS inputs