Crude Oil Surges Over 3%, Edges Closer to 52-Week High Amid West Asia Tensions

New Delhi — Global crude oil prices spiked sharply on Monday as escalating tensions in West Asia rattled energy markets, with fresh geopolitical risks driving fears of supply disruptions.

The international benchmark Brent crude jumped as much as 3.66% to touch an intraday high of $116.70 per barrel, moving close to a 52-week high. Meanwhile, West Texas Intermediate (WTI) also surged over 3%, crossing the $103 per barrel mark.

The rally follows reports of missile strikes by Yemen’s Iran-backed Houthi group targeting Israel over the weekend. The group has warned of continued attacks until military actions against Iran and its allies stop, adding a new layer of uncertainty to already fragile global supply chains.

Analysts note that oil has become the most sensitive macroeconomic variable in the current environment. With markets increasingly factoring in the possibility of prolonged disruption, some projections even suggest prices could spike toward $200 per barrel if the conflict intensifies further.

Brent crude has already surged more than 50% this month, revisiting levels last seen during earlier phases of geopolitical conflict, despite ongoing diplomatic efforts to ease tensions.

For import-dependent economies like India, rising crude prices present multiple challenges — including higher inflation, pressure on corporate profit margins, and a widening current account deficit.

The impact is also visible across financial markets. In the US, major indices declined, with the S&P 500 falling 1.67% and the Nasdaq Composite dropping ???? 2%.

Asian markets mirrored the downturn. Japan’s Nikkei 225 plunged nearly 4%, while Hong Kong’s Hang Seng Index slipped over 1% and South Korea’s KOSPI declined close to 3%.

Back home, benchmark indices BSE Sensex and NSE Nifty 50 also opened weak, each falling more than 1% in early trade as the West Asia conflict entered its fifth week and broadened further.

With inputs from IANS