Crude oil prices surge nearly 10% above $100 as US blockades Strait of Hormuz
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Mumbai: International crude oil prices rocketed nearly 10% on Monday, breaching $100 per barrel, after the US Navy moved to blockade the Strait of Hormuz amid collapsed peace talks with Iran.
Brent crude futures soared 8.61%, or $8, to an intraday peak of $103.40 per barrel. West Texas Intermediate (WTI) crude climbed 9.38%, or $9, to $105.63.
Domestically, MCX crude oil futures for April 20 traded at ₹9,850, up 7.61% or ₹697.
The spike followed US President Donald Trump's announcement that the US Navy would blockade the Strait, accusing Iran of failing to keep it open. We will block “any and all ships trying to enter or leave," Trump warned, citing threats to maritime security and global oil supplies.
This escalates tensions despite a two-week ceasefire agreed on April 8 to reopen the vital chokepoint, through which a fifth of the world's oil flows. The breakdown raises fears of severe supply disruptions.
Indian equity markets tumbled in response, with Sensex and Nifty down around 2% in early trade amid global risk aversion. Asian benchmarks also slid: Nikkei, Hang Seng, and KOSPI each fell over 1%.
(Inputs from IANS)