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Crude Oil Prices Jump As US-Iran Tensions Push Brent Above $85

International crude oil prices recorded their strongest levels in nearly a month on Tuesday as rising hostilities between the United States and Iran unsettled energy markets.

Brent crude increased by 2.82 per cent to trade above $85 per barrel, while US West Texas Intermediate (WTI) crude gained almost 3 per cent to reach $80.42 per barrel.

The sharp rise in overseas oil prices lifted India’s commodity market, with MCX crude oil futures jumping 4.51 per cent, or ₹332, to ₹7,692 during intraday trading.

Traders responded to growing concerns that geopolitical tensions could disrupt global crude supplies.

The latest advance came after Brent crude registered its biggest single-day rise since May 2020 in the previous session, gaining close to 10 per cent.

Market Outlook

Market analysts said renewed military action in the Middle East continues to drive oil prices higher. They noted that the United States restored its naval blockade on Iran, while fresh military exchanges near the Strait of Hormuz intensified concerns over the uninterrupted flow of crude oil.

Experts also said the July MCX crude oil futures contract opened nearly 4 per cent higher at ₹7,654. They believe prices could climb towards ₹8,000 if the contract breaks above the immediate resistance level of ₹7,729. If prices retreat, they expect support to emerge between ₹7,400 and ₹7,260.

US President Donald Trump announced the reimposition of Washington’s blockade on Iranian shipping and said nations benefiting from American naval protection in the Strait of Hormuz should help cover the operational costs.

At the same time, reports indicated that Iran launched drones towards US assets in Kuwait and fired cruise missiles at a vessel it described as hostile.

Tehran also stated that its agreement with Washington had entered a crisis phase and declared that it would suspend its commitments until the United States complied with its obligations.

Also Read: Gold, Silver Slide Up To 2% As Stronger Dollar Weighs On Bullion

Bishal Singh

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