Hot Commodities: From crash to comeback crude recovers on escalating supply risks

Crude oil futures rebounded above $98 per barrel in Asian trading, staging a sharp recovery after the prior session?s steep selloff, as persistent supply concerns overshadowed ceasefire optimism. Despite the announcement of a U.S.?Iran truce, reports of continued disruption in the Strait of Hormuz?coupled with escalating regional tensions?rekindled fears of a sustained supply shock. The near shutdown of this critical transit route, which facilitates roughly one-fifth of global energy flows, triggered aggressive short covering and a swift reinstatement of geopolitical risk premiums. While a larger-than-expected US crude inventory build briefly weighed on sentiment, the market?s focus remains firmly on supply-side vulnerabilities. MCX crude futures mirrored the global rebound, climbing 2.4% to ₹9075 per barrel after the previous session?s sharp decline.

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