Strait of Hormuz Tensions Drive Oil Prices Higher Amid Iran-US Conflict
The Strait of Hormuz has become a focal point for global oil supplies after Iran's Revolutionary Guard Corps said it would intensify its response to any further attacks. This comes after Iran attacked 10 ships near the waterway, while the US sank five Iranian oil tankers.
Oil flows through the Strait of Hormuz have reportedly dropped to around one-fourth of pre-war levels following tanker strikes this week. The disruption has added to concerns over the availability and movement of crude in international markets.
The price of Brent crude, the international benchmark, rose 0.68 per cent to $101.90 a barrel, while US West Texas Intermediate (WTI) gained 1.81 per cent to $97.79 a barrel.
Analysts have maintained a positive outlook for crude prices due to the shipping activity through the key route being affected. On the domestic futures market, MCX crude opened higher on Thursday at Rs 9,140, gaining 0.45 per cent. According to market experts, the contract was testing the Rs 9,150-Rs 9,200 resistance area after an extended rally.
A sustained move above Rs 9,200 could take prices towards Rs 9,350-Rs 9,400, analysts said. Immediate support is placed at Rs 9,000-Rs 8,950, followed by Rs 8,800-Rs 8,750.