New Delhi : Crude oil prices surged sharply after US President Donald Trump demanded what he called an “unconditional surrender” from Iran, fueling fears of a prolonged conflict that could disrupt global energy supplies. WTI crude oil futures jumped 12.2% to USD 90.90, marking their biggest weekly gain since April 2020.
Rising tensions in Iran and the broader West Asia region have raised concerns over global crude supplies, with experts warning of continued volatility that could affect energy markets worldwide, including India.
Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, said the ongoing US-Iran conflict is likely to keep oil prices elevated. “The war has disrupted energy markets and heightened concerns over supply flows through the Strait of Hormuz, a critical chokepoint through which roughly 20% of global oil passes,” Sheth noted.
Jim Burkhard, Global Head of Crude Oil Research at S&P Global Energy, warned that the conflict could trigger the largest oil supply disruption in history if flows through the Strait remain low or halt entirely. “While energy infrastructure was initially spared, recent attacks on facilities in Saudi Arabia and Qatar have added a critical shock to oil and gas markets,” Burkhard said.
According to S&P Global Energy Commodities at Sea data, only five oil tankers transited the Strait of Hormuz on March 1, compared with about 60 tankers per day previously.