Hot Commodities: Oil rallies 3% as US-Iran tensions escalate

Crude oil prices surged on Wednesday as escalating geopolitical tensions in the Middle East reignited concerns over potential supply disruptions. Market sentiment strengthened after fresh US military strikes on Iranian targets intensified fears of heightened conflict in the strategically vital Strait of Hormuz, a key artery for global energy trade. The dollar index traded under 101 as investors awaited the minutes of the Federal Reserve?s June meeting for additional clues on the policy outlook after the central bank adopted a more hawkish tone at its June policy meeting. Elsewhere, data on Tuesday showed the US trade deficit widened to $77.6 billion in May. Brent crude advanced 3% to $76.57 per barrel, while WTI crude gained 3% to $72.74. On the domestic front, MCX July crude oil futures soared 3.5% to ₹6,938. The renewed geopolitical risk premium has reinforced bullish momentum in oil markets, with investors closely monitoring further developments that could impact global crude supplies.

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