Crude Oil Prices Soar as US-Iran Conflict Escalates in Middle East

Crude oil prices surged by 2.07% to ₹8,149 on Monday, driven by escalating tensions in the Middle East following a US-Iran showdown.

The conflict erupted after the United States targeted Iranian rocket launchers near the Strait of Hormuz, a strategically important waterway that connects the Persian Gulf to the Arabian Sea.

Iran claimed it had attacked U.S. military bases in Jordan, while Tehran reported that a supertanker attempting to use the southern route of the Strait of Hormuz struck two mines.

The market is pricing in a higher risk premium due to concerns over disruptions in the Strait of Hormuz, which could impact global crude supplies, said an analyst.

The International Energy Agency expects global oil supply to decline by 4.3 million barrels per day this year, citing uncertainty over the reopening of the Strait and unrestricted shipping through Bab el-Mandeb as major risks.