Crude Prices Soar as US-Iran Tensions Escalate

Crude oil prices have surged to their highest level in nearly six weeks, driven by escalating US-Iran tensions. Brent crude is trading near $95 a barrel on September 2, after US forces struck Iranian targets around the Strait of Hormuz.

Despite this sharp rise, oil marketing companies say they can absorb crude costs at current levels of $85-$90 per barrel without passing on costs to consumers.

However, a sustained move above $95-100 dollars a barrel could prompt a review of retail fuel prices. Oil marketing companies currently have a buffer against a petrol diesel price hike, but this comfort zone is thinning as crude prices climb.