Oil Markets Plunge Amid Escalating US-Iran Conflict and Shipping Disruptions
The global oil market experienced its most volatile week in recent memory due to the escalating US-Iran conflict and disruptions to key shipping routes through the Strait of Hormuz. The conflict expanded beyond the Gulf, threatening other critical maritime chokepoints.
Brent crude, the global oil benchmark, was on track for a 20% monthly gain as West Texas Intermediate (WTI) futures were set for a similar increase. In contrast, MCX crude futures for August delivery ended the week at ₹7,811 per barrel, depreciating ₹226 or 2.81%, on Friday alone.
The trading week began with a dramatic plunge in crude prices as Washington abruptly suspended its bombing campaign against Iranian targets over the weekend, raising hopes of de-escalation. The sharp sell-off was driven by easing geopolitical tensions following the pause in US-Iran hostilities.