Crude oil nears $86; MCX jumps 3% amid Strait of Hormuz risks

Crude oil prices advanced toward $86 per barrel on Wednesday, extending their rally as the US intensified military operations against Iranian targets for the 11th consecutive day, heightening concerns over potential disruptions to global energy supplies. Reflecting the bullish sentiment, MCX August crude oil futures surged 3% to Rs 8,377 per barrel. The International Energy Agency (IEA) warned that escalating tensions around the Strait of Hormuz and the Bab el-Mandeb Strait have increased uncertainty over the global oil market and raised security-of-supply concerns. However, the agency noted that robust exports from Gulf producers, particularly Saudi Arabia and the UAE through alternative routes, continue to provide a cushion against severe supply disruptions, helping prevent a sharper spike in crude prices.

Powered by Commodity Insights