US-Iran Tensions Fuel Global Oil Market Volatility

Oil prices have remained steady in major Indian cities despite a dip in global crude prices. This stability is largely due to rising tensions between the US and Iran, which are affecting the global oil market.

The main concern revolves around the Strait of Hormuz, a crucial route for 20% of global oil and gas supplies. Iranian oil exports through this strait have slowed significantly due to tougher US sanctions, leading to reduced oil reaching buyers like China.

Tehran has condemned Trump's new sanctions as 'economic terrorism,' but hopes for a diplomatic resolution. However, Commonwealth Bank of Australia commodities analyst Vivek Dhar warns that if the US measures are successful, it could lead to increased violence from Iran and pose a risk to energy markets.