Global oil prices surged on Thursday, crossing $100 per barrel after Iran said it was not engaged in direct negotiations with the United States to end the ongoing conflict. The move dampened ceasefire hopes and raised fresh concerns over supply disruptions.
Brent crude futures climbed 1.21 per cent to $103.46 per barrel, while US West Texas Intermediate (WTI) crude rose 1.35 per cent to $91.54 per barrel, highlighting market volatility as tensions in the Middle East intensified.
Abbas Araghchi clarified that exchanges between Tehran and Washington through intermediaries do not constitute formal negotiations. He added that Iran was unlikely to accept a US-backed ceasefire proposal, further reducing chances of de-escalation.
A day earlier, oil prices had dropped sharply on hopes of a ceasefire in West Asia. The latest stance from Iran reversed the trend and injected renewed uncertainty into global energy markets.
Experts said recent corrections in crude prices could ease pressure on India’s macroeconomic indicators, including inflation and the Current Account Deficit (CAD), though technical signals show key support levels remain under test.
For India, every $10 per barrel change in crude typically impacts the CAD by 0.3 to 0.5 percentage points of GDP and raises consumer price inflation by 20 to 30 basis points, depending on the level of pass-through.
Iran said it would allow vessels from five ‘friendly’ nations, including India, to pass through the Strait of Hormuz, while restricting access for others. Ships from Russia, China, Pakistan and Iraq will also receive safe passage.
Iran warned that vessels linked to the United States, Israel and certain Gulf nations involved in the conflict would not get clearance to transit the strait.
Also Read: Crude Oil Prices Fall As Ceasefire Hopes Ease West Asia Concerns
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