Oil Prices Jump Past $100 as Middle East Tensions Rattle Markets

Mumbai — Global crude oil prices surged sharply on Friday, climbing up to 2 per cent as rising geopolitical tensions in the Middle East overshadowed a unilateral ceasefire announcement by the United States.

The international benchmark Brent crude rose to around $107 per barrel, while West Texas Intermediate (WTI) gained nearly 2 per cent to trade close to $97.6. Over the week, Brent has jumped nearly 19 per cent, with WTI also recording strong gains of about 17 per cent.

In India, crude oil futures on the Multi Commodity Exchange (MCX) were trading at approximately Rs 9,077, down about 1 per cent in early trade.

Market experts attribute the volatility primarily to disruptions around the Strait of Hormuz, a crucial global oil transit route through which nearly 20 per cent of the world’s oil supply passes. Continued military activity and maritime tensions in the region have raised concerns over supply stability.

Analysts suggest that crude prices remain in a cautiously bullish zone. Immediate resistance for global oil is seen near $99, with a potential breakout pushing prices toward $104.50 and possibly $110. On the downside, $95 is considered a key support level, with a stronger base between $90.80 and $88.50.

Adding to the uncertainty, Donald Trump stated that the US would avoid using nuclear weapons in its conflict with Iran, even as reports indicate intensified military operations targeting Iranian vessels near the Strait of Hormuz.

Meanwhile, there are indications that Israel and Lebanon have agreed to extend their ceasefire by three weeks, offering a limited counterbalance to the broader regional tensions.

The surge in oil prices also weighed on equity markets. India’s benchmark indices, BSE Sensex and Nifty 50, slipped up to 1 per cent in early trading, led by selling pressure in IT and pharma stocks.

With inputs from IANS