West Asia Tensions Spark Surge in Crude Oil Futures

Crude oil futures surged over 3% on Wednesday as escalating military tensions in West Asia reignited fears of supply disruptions. The Multi Commodity Exchange (MCX) saw August delivery prices rise to Rs 7,845 per barrel, while Brent and WTI oil futures also gained nearly 4% each.

The rebound comes after a 16% slump in the previous three sessions, driven by hopes of a permanent agreement to reopen the Strait of Hormuz. However, analysts say the physical market remains under strain, with oil flows through the Strait down significantly and Red Sea shipments weakening due to Houthi attacks.

Aamir Makda, Commodity & Currency Analyst at Choice Broking, said MCX Crude oil for August contract was trading with a positive bias on renewed supply-disruption concerns. Anindya Banerjee, Head of Commodity and Currency Research at Kotak Neo (formerly Kotak Securities), added that the physical market remains under strain.