Mumbai, April 10: Global crude oil prices saw a notable increase on Friday. Despite a two-week ceasefire between the U.S. and Iran, concerns remain among investors due to attacks on Saudi Arabia’s energy infrastructure and fears of supply disruptions in the Hormuz Strait.
International benchmark Brent crude rose by 1.13%, reaching $97.01 per barrel, while WTI crude increased by 1.39%, trading at $99.24 per barrel.
It is important to note that oil prices had dropped nearly 20% on Wednesday, falling below $100 per barrel, a level they had maintained since February 28.
On the Multi Commodity Exchange (MCX) in India, crude oil futures for April 20 delivery traded at ₹9,150 per barrel, reflecting an increase of ₹217 or 2.43% around 11:07 AM.
This price surge comes amid ongoing skepticism regarding the U.S.-Iran ceasefire, with Israel continuing its attacks in Lebanon. Additionally, Iran has reportedly closed the Hormuz Strait, impacting oil supply.
Shipping companies have expressed the need for clearer terms regarding the ceasefire before dispatching vessels through this critical maritime route.
Meanwhile, U.S. President Donald Trump has warned of potential large-scale military action if ceasefire conditions are not adhered to, although he noted that such an occurrence is unlikely. He reiterated that Iran will not be allowed to possess nuclear weapons and that the Hormuz Strait must remain open and secure, with U.S. military readiness in place.
On Thursday, shipping activities through the Hormuz Strait were operating at less than 10% of normal levels, affecting the supply chain.
Looking ahead, the Asian Development Bank (ADB) has indicated that oil prices may remain elevated in the near future, but stability could gradually return if geopolitical tensions ease.
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