Middle East Tensions Keep Oil Prices Near $100 Per Barrel

Crude oil prices are lingering near the $100-per-barrel mark, driven by ongoing tensions in the Middle East that threaten global energy supplies. Brent crude, the international benchmark, was trading around $100 a barrel, while US West Texas Intermediate crude hovered near $89. The market has seen sharp swings as traders weigh supply stability against geopolitical risks.

The primary concern centers on the Strait of Hormuz, a critical oil shipping route. Recent attacks on tankers and energy infrastructure have heightened fears of supply disruptions, which could push prices even higher if oil movement is severely impacted.

Despite these risks, Middle Eastern crude exports have shown signs of recovery. Producers have adapted by using alternative routes and logistical arrangements to maintain oil flow. Additionally, the planned release of around 100 million barrels of crude oil and refined products by G7 countries has helped ease supply pressure and prevented prices from surging further.

Industry experts warn that the effects of current disruptions may persist. Saudi Aramco's chief executive noted that rebuilding depleted global inventories could take up to two years. Refinery disruptions and shortages of refined products like diesel are also adding pressure, suggesting that the oil market could remain volatile even if crude supplies improve.

For India, which relies heavily on imported crude oil, sustained high prices around or above $100 could increase the import bill, put pressure on the rupee, and raise inflation risks.