Crude Oil Prices Jump Nearly 10% On Strait Of Hormuz Tensions

Global crude oil markets rallied sharply on Monday, with prices jumping close to 10 per cent after fresh tensions in the Strait of Hormuz raised fears of supply disruptions.

Brent crude climbed above $103 per barrel, while US West Texas Intermediate (WTI) moved past $105, reflecting strong upward momentum during intraday trade. The spike followed a decision by the United States to intensify naval action in the region after talks with Iran failed to produce progress.

US President Donald Trump said the US Navy would act to restrict shipping activity linked to Iran, citing concerns over the safety of a key global energy corridor. The development has heightened worries about interruptions in oil flows through one of the world’s busiest transit routes.

The Strait of Hormuz carries a significant share of global crude shipments, making it highly sensitive to geopolitical developments. Any disruption in this passage typically has an immediate impact on international oil prices.

In India, crude futures on the Multi Commodity Exchange also surged, with the April contract trading near Rs 9,850, up over 7 per cent. The latest rise comes shortly after a temporary ceasefire between the US and Iran earlier this month had raised hopes of easing tensions.

The current escalation, however, suggests those efforts have faltered, reviving concerns over global supply stability.

Financial markets reacted negatively to the developments. Domestic benchmark indices in India declined around 2 per cent in early trade, while major Asian markets, including Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s KOSPI, also traded lower.

Analysts say continued uncertainty in the region could keep oil prices volatile, with broader implications for inflation and global economic stability.

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