Crude oil prices rallied sharply on Tuesday, with MCX crude oil futures jumping nearly 9% as escalating geopolitical tensions intensified concerns over global supply disruptions.
As per the latest data, Crude Oil Futures (continuous contract) on the Multi Commodity Exchange were trading at Rs 7,081 per barrel, up Rs 584 or 8.99%, as of 17:32 GMT+5:30.
Global oil benchmarks extend gains
In international markets:
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Brent crude was trading around $83.80–$84.80 per barrel, up roughly 6–9%.
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WTI crude hovered near $76–$77 per barrel, also gaining around 7–9% intraday.
The rally pushes prices to multi-month highs and marks a continuation of the strong upward move seen in the previous session.
Why crude is rising
The surge is being driven primarily by a growing geopolitical risk premium as the US-Israel-Iran conflict escalates. Traders are pricing in the risk of disruptions through the Strait of Hormuz, a critical chokepoint that handles nearly 20% of global oil flows.
Concerns include:
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Potential tanker rerouting and reduced maritime traffic
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Rising freight and insurance costs
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Risk of infrastructure damage in the Gulf region
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Spillover effects from reported disruptions in regional LNG exports
The fear of constrained Middle East output is currently outweighing demand-side concerns, pushing oil higher despite broader market volatility.
Market outlook
Analysts have warned that prolonged supply disruptions could drive prices significantly higher if tensions escalate further. Energy-related equities and derivatives are also reacting positively to the sharp rise in crude benchmarks.
With volatility elevated, oil prices are likely to remain sensitive to headlines surrounding shipping routes, military developments, and diplomatic signals in the region.
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