- Crude oil prices surge 13% after Israel’s military strike on Iran.
- Brent and WTI post single-day gains of over 5%, reaching 2-month highs.
- Indian energy stocks rise, with ONGC and Oil India gaining up to 4%.
- Experts warn of further hikes if Middle East tensions escalate — Brent may cross $100.
The Global oil markets reacted sharply as Crude Oil prices jumped by 13% after Israel launched an attack on Iran, pushing rates to their highest levels since February. Brent Crude and WTI (West Texas Intermediate) both saw gains of over 5% in a single day, fueling fresh concerns over rising tensions in the Middle East and possible disruptions in energy supplies, reports INVC NEWS.
Middle East Tensions Drive Oil Market Rally
The renewed conflict between Israel and Iran has triggered immediate concerns over potential disruptions in the global oil supply chain. The Middle East remains a vital corridor for crude exports, and any military escalation in the region tends to prompt a spike in oil prices. Friday’s developments confirmed this pattern, with both major benchmarks spiking to two-month highs.
Indian energy stocks responded positively to the oil rally. Shares of ONGC and Oil India jumped as much as 4% in early trade. ONGC opened at ₹251.05 and quickly climbed to ₹255.15, reflecting investor optimism about increased revenues driven by higher global crude prices. India is heavily reliant on oil imports, sourcing nearly 85% of its crude from global markets. A spike in oil prices directly translates into higher costs at the pump. In the coming weeks, Indian consumers could see rising petrol and diesel prices. The impact will likely ripple through the economy, affecting logistics, manufacturing, and consumer goods — potentially pushing up inflation.
Pressure on the Rupee and Trade Deficit
As oil becomes more expensive, India requires more U.S. dollars to maintain the same volume of imports. This increases demand for foreign currency, potentially weakening the rupee. A weaker rupee, paired with costlier imports, could expand India’s trade deficit and strain macroeconomic stability — a key concern for policymakers and financial analysts.
Will Oil Prices Cross $100?
Market analysts warn that oil prices could climb further if the geopolitical situation deteriorates. Any disruption to Iran’s oil production or shipping routes may tighten global supply, with Brent Crude possibly breaching the $100 per barrel mark. Investors are bracing for further volatility.
Investors Stay Alert as Geopolitical Risks Rise
The latest oil price rally underscores how closely global markets react to geopolitical flashpoints. Energy sector stocks, in particular, remain highly sensitive to international developments. As the Middle East situation evolves, traders and governments worldwide are keeping a close watch — not just on energy prices, but also on broader economic implications.
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Source: INVC NEWS
