US-Iran Tensions Spark Crude Oil Price Surge

Crude oil futures surged for the fourth consecutive day on August 31, as fresh US-Iran military strikes heightened fears of disruption to energy supplies through the Strait of Hormuz.

The MCX crude oil for September delivery jumped by Rs 232, or 2.91 per cent, to Rs 8,216 per barrel in 6,578 lots. The October contract also advanced Rs 100, or 1.27 per cent, to Rs 7,947 per barrel in 1,749 lots on the MCX.

Akshat Siddhant, Lead quant analyst at investment platform Mudrex, said that Iran's retaliatory strikes on US military installations rekindled fears of a wider conflict following Washington's attacks on Tehran's rocket-launcher sites.

The international markets also saw Brent oil futures for November delivery rise by USD 2.88, or 3.3 per cent, to USD 90.98 per barrel on the Intercontinental Exchange. The West Texas Intermediate (WTI) crude for October contract went up by USD 2.37, or nearly 3 per cent, to USD 85.77 per barrel on the New York Mercantile Exchange.