Global crude oil prices surged sharply on Monday as escalating tensions in West Asia intensified, with the involvement of Yemen’s Iran-backed Houthis adding further uncertainty to energy markets.
International benchmark Brent Crude rose up to 3.66% to an intraday high of $116.70 per barrel, nearing a fresh 52-week high. The US benchmark WTI Crude also climbed over 3%, crossing the $103 per barrel mark.
The spike followed missile launches by Houthi forces targeting Israel over the weekend. The group warned of continued attacks until strikes on Iran and its allied forces cease, increasing risks to already strained global energy supplies.
Brent prices have surged more than 50% in March, revisiting levels seen during earlier phases of the conflict despite ongoing diplomatic efforts.
Analysts noted that crude oil remains the most crucial macroeconomic factor influencing markets at present.
They added that markets are increasingly pricing in prolonged supply disruptions, with some projections suggesting prices could rise towards $200 per barrel if tensions persist.
For import-dependent economies like India, this raises concerns over higher inflation, pressure on corporate margins, and a widening current account deficit.
Global equity markets also remained under pressure. The S&P 500 declined 1.67%, while the Nasdaq Composite fell about 2%.
In Asia, Japan’s Nikkei 225 dropped nearly 4%, while Hong Kong’s Hang Seng Index and South Korea’s Kospi also recorded notable losses.
Domestic indices, including the BSE Sensex and Nifty 50, opened lower, each falling over 1% in early trade as the conflict entered its fifth week and broadened further.
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