WTI Crude oil rallies to $78 on Israel-Iran conflict fears

WTI Crude oil futures surged to nearly $78 per barrel on Friday, marking their highest level since January, as Israel?s preemptive strike on Iran heightened fears of significant supply disruptions. Prices initially spiked over 10% but pared gains to around 5% in late trade, with MCX June contracts advancing to Rs 6161, up by more than Rs 300 per barrel. Investors remain wary of potential Iranian retaliation and possible disruptions to the Strait of Hormuz, a vital chokepoint for about 20% of global oil shipments. The US began a partial evacuation of regional personnel amid threats to its bases if nuclear talks collapse. Meanwhile, EIA data revealed a larger-than-expected drawdown in US crude inventories, underlining firm demand. Softer US inflation also reinforced expectations for Fed rate cuts by September, which could bolster economic growth and oil consumption further. WTI Crude oil futures are currently trade at $75 per barrel, up around 6% on the day.

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