Hormuz Tensions Fuel Four-Day Oil Price Surge

Crude oil prices surged for the fourth consecutive session on August 19, driven by renewed concerns over the security of the Strait of Hormuz and dwindling energy supplies from West Asia.

The MCX crude oil futures rose by Rs 57 to trade at Rs 8,145 per barrel in 11,535 lots, while Brent oil futures for October delivery increased by nearly 1% to USD 91.65 per barrel on the Intercontinental Exchange.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Neo (formerly Kotak Securities), noted that Brent has held above USD 91 per barrel for a third straight day following the expiration of the 60-day ceasefire window between the US and Iran without an agreement.

A merchant vessel was struck by an unknown projectile while transiting the Strait of Hormuz, resulting in a crew casualty, adding to the uncertainty surrounding the supply outlook.