Global Oil Markets Rally Sharply As Strait Of Hormuz Tensions Mount

Brent crude prices have surged by more than 60 per cent since the outbreak of conflict involving the United States, Israel, and Iran, climbing from around $70 per barrel to nearly $112 per barrel on Monday.

On the Multi Commodity Exchange (MCX), crude oil futures for May also rose by 0.65 per cent to ₹9,318 per barrel.

Over the past 30 days, crude prices have increased by approximately 56 per cent, while US West Texas Intermediate (WTI) hovered near $98.75 per barrel after gaining more than 2 per cent in the previous session.

Escalating tensions in West Asia have threatened key shipping routes, particularly the Strait of Hormuz, prompting production cuts and force majeure declarations across oil facilities in the region.

US President Donald Trump had set a 48-hour deadline for Iran to fully reopen the Strait of Hormuz, warning of severe consequences if shipping lanes were disrupted.

In response, Iran stated that the strait remains open, though it has warned of potential strikes on energy infrastructure in Gulf countries.

Global financial firm Goldman Sachs has revised its 2026 Brent crude estimate to $85 per barrel and projected near-term prices to average around $110 during March–April.

It also expects reduced flows through the strait for several weeks before a gradual recovery.

Despite tightening supplies in Asia, crude inventories in OECD economies across the US and Europe continue to rise, reflecting earlier oversupply.

Analysts warn that production losses in the Middle East could increase significantly, adding further pressure to global energy markets.

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