Oil Prices Rise As President Trump Weighs Curbs On Iran With Strait Of Hormuz Concerns

Global oil prices remained firm on Wednesday, supported by concerns over continued restrictions on energy flows linked to tensions between the United States and Iran.

International benchmark Brent crude rose 0.63 per cent to $111.97 per barrel earlier in the day. West Texas Intermediate climbed 0.81 per cent to $100.74.

Later, prices showed slight volatility, with Brent at $111.12, down 0.13 per cent, and WTI at $99.32, lower by 0.6 per cent.

Reports indicate that Donald Trump has asked officials to prepare for a prolonged blockade targeting Iranian ports. The move aims to tighten economic pressure and restrict Tehran’s maritime trade and energy exports.

The ongoing situation around the Strait of Hormuz continues to influence global energy markets. The passage is crucial, handling nearly one-fifth of the world’s oil and liquefied natural gas shipments, and any disruption has a direct impact on supply expectations.

On the domestic front, crude oil futures on the Multi Commodity Exchange declined by 0.88 per cent, or Rs 84, to Rs 9,401.

Earlier in April, a ceasefire was announced between US-backed forces and Iran, though a final agreement has not been reached. Iran has continued to limit shipping activity in the region, while US restrictions on its ports remain in place.

Slow progress in negotiations related to Iran’s nuclear programme and potential sanctions relief is also fuelling uncertainty.

Market experts say the ongoing geopolitical tensions could keep oil prices elevated for a longer period. They added that any decision by the Organisation of the Petroleum Exporting Countries may influence prices over the medium term. Developments involving the United Arab Emirates are also unlikely to ease pressure immediately.

Analysts warn that crude prices hovering around $110 per barrel could have adverse implications for India. They could increase inflation risks while weighing on economic growth if the trend persists.

Also Read: Gold, Silver Slide Up To 2% As West Asia Conflict Lifts Oil Past $110