After fresh series of attacks on Iran, the crude oil prices surged sharply by 3 per cent on Thursday. US West Texas Intermediate (WTI) crude futures for July delivery climbed to around $92.7 per barrel, while Brent crude futures rose to about $95.4 per barrel. he gains extended a rally that has gathered pace amid escalating hostilities between Washington and Tehran.
Brent crude climbed above $95 per barrel in Asian trade, extending gains from the previous session.
The latest jump stems from what is being called ” additional self-defence strikes” by the USA as it launched a series of attacks on multiple locations in Iran today. In response, the Iranian military attacked US’ bases in Kuwait, Bahrain and Jordan. It also threatened to close the Strait of Hormuz warning that vessels attempting to pass through could face military action. Roughly one-fifth of global oil and gas shipments normally move through the narrow channel, making any disruption a major concern for energy markets..
Reports have been making rounds predicting a significant hike in oil prices if the hostilities between US and Iran escalate further from the current state. Experts claim renewed attacks can deepen the supply shut-ins in the Middle East as the war risk and the almost shut down Strait of Hormuz continue to pressurize oil markets. Oil prices could move towards $150 per barrel. With 11.8 million barrels per day (bpd) shut in across six Gulf producers
Meanwhile, oil sensitive companies remained under pressure as the crude prices soared. Sectors such as fuel retailing, aviation, tyres and paints were majorly impacted while upstream energy producers Oil India gained 0.6 percent, while ONGC advanced 0.7 percent.