Oil prices surge towards $100 amid rising tensions over Strait of Hormuz

Global oil prices climbed sharply on Monday, edging closer to the $100 per barrel mark, as renewed tensions in West Asia heightened concerns over energy supply disruptions.

The international benchmark Brent crude rose more than 7 per cent during intraday trading to reach around $96.87 per barrel. Meanwhile, WTI crude surged nearly 9 per cent to trade at about $91.20.

The rally followed Iran’s announcement that it was tightening its control over the Strait of Hormuz, a critical corridor for global oil shipments. Tehran warned that the route had effectively been closed again, raising fears of supply constraints.

Tensions escalated further after Donald Trump said the United States would not be pressured by any attempt to block the waterway. Iranian officials, meanwhile, accused Washington of maintaining a blockade on its ports in violation of a ceasefire agreement.

Mojtaba Khamenei said that Iran’s naval forces were prepared to respond forcefully to perceived threats, adding to uncertainty over whether the fragile truce between the two sides would hold.

The situation intensified after US authorities reportedly seized an Iranian cargo vessel accused of breaching restrictions, prompting warnings of retaliation from Tehran and further undermining confidence in the ceasefire.

On the domestic front, crude prices on India’s Multi Commodity Exchange also rose significantly, reflecting global trends.

Indian equity markets reacted with volatility, as benchmark indices BSE Sensex and Nifty 50 slipped into negative territory after early gains, weighed down by concerns over rising energy costs.

Despite the geopolitical tensions, broader global markets remained relatively steady. Asian indices, including Nikkei 225, Hang Seng Index and KOSPI, traded modestly higher.

In the United States, Wall Street ended the previous session on a positive note, with the S&P 500 rising 1.2 per cent and the Nasdaq Composite gaining 1.52 per cent.

Analysts said oil markets are likely to remain highly sensitive to geopolitical developments, with any escalation in the region potentially pushing prices closer to the $100 threshold in the near term.

With IANS inputs