Crude Oil Prices Surge to Four-Month Highs Amid Middle East Tensions

Global crude oil prices surged to four-month highs after a volatile week, driven by supply disruptions and tension in the Middle East. The International Benchmark Brent crude finished the week at $104.61 per barrel, down 2.81% on the final session but well above its September 4 start of $95.08 per barrel.

The core driver behind the price surge was a severe geopolitical squeeze on global energy transport routes, particularly in the Strait of Hormuz, which handles nearly 20% of daily world petroleum consumption. Repeated attacks on commercial tankers and rising war-risk insurance premiums compounded an existing deficit in physical supply.

Supply balances had already tightened following output curbs by OPEC and a notable drop in Saudi Arabian crude exports, which fell by 2.3 million barrels per day according to the International Energy Agency. The profit-taking wave picked up speed after reports of a possible diplomatic deal with Iran to guarantee safe transit for commercial vessels.

For India, elevated global oil prices pose an immediate economic challenge, threatening to widen the current account deficit and put downward pressure on the Indian Rupee against the US Dollar.