Crude Oil Hits Five-Month High As Middle East Tensions Raise Supply Fears

Global crude oil prices rose on Tuesday, approaching a five-month high as escalating Middle East tensions and attacks on vessels fuelled concerns over supply disruptions.

Brent crude, the international benchmark, gained 0.48 per cent, or 53 cents, to $110.08 per barrel. It touched $110.70 in the previous session, its highest level since May 20.

US West Texas Intermediate (WTI) crude advanced 0.46 per cent, or 45 cents, to $99 per barrel.

Renewed Houthi attacks on a Yemeni military training camp and strikes targeting Saudi energy, airport and military facilities supported crude prices.

Brent has surged nearly 80 per cent so far this year amid widening conflict involving the United States and Iran, alongside the Russia-Ukraine war.

The conflicts have disrupted energy supplies and raised concerns over global crude shipments.

Shipping tracker Kpler reported at least 18 vessel attacks over the past two weeks, keeping a geopolitical risk premium embedded in oil prices.

However, exports from Gulf producers have continued to recover. US Energy Secretary Chris Wright said crude flows had rebounded to around 80 per cent of pre-war levels, although refined-product shipments remained constrained, according to reports.

Iraq’s oil minister said the country’s crude exports had exceeded 3.4 million barrels per day so far this month.

Exports are approaching pre-war levels after Iraq offered steep discounts against regional benchmark prices.

Indian commodity exchanges have suspended morning trading for Dussehra. The Multi Commodity Exchange of India (MCX) will remain closed from 9 am to 5 pm before reopening for the evening session.

Trading in gold, silver, crude oil and base metals will resume during the evening session. Domestic equity markets will remain closed, with the BSE and NSE suspending trading across major segments.

Also Read: Indian Stock Markets Remain Closed for Dussehra; Trading Resumes Wednesday