International crude oil prices surged on Monday, climbing nearly 10 per cent and crossing the $100 per barrel mark, following the US Navy’s move to blockade the Strait of Hormuz
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MUMBAI — International crude oil prices surged on Monday, climbing nearly 10 per cent and crossing the $100 per barrel mark, following the US Navy’s move to blockade the Strait of Hormuz amid stalled peace talks.
Brent crude futures jumped 8.61 per cent or $8 to hit an intraday high of $103.40. Similarly, US West Texas Intermediate (WTI) crude traded at $105.63, up 9.38 per cent or $9.
On the domestic front, crude oil futures (April 20 contract) on the Multi Commodity Exchange (MCX) were trading at INR 9,850, up 7.61 per cent or INR 697.
The sharp rise in oil prices came after US President Donald Trump announced the US Navy would begin blockading the Strait of Hormuz.
The US President said Iran had “failed to keep the waterway open” and warned that the US would block “any and all ships trying to enter or leave” the Strait, citing concerns over maritime security and potential disruption to global oil supplies.
Notably, the US and Iran had agreed to a two-week ceasefire on April 8, aimed at easing tensions and ensuring the reopening of the Strait of Hormuz, a key global oil transit route.
However, the latest escalation indicates a breakdown in those efforts, raising concerns over supply disruptions.
The Strait of Hormuz is a vital transit route for global crude shipments, and any disruption has immediate implications for supply chains and prices.
Meanwhile, domestic equity markets traded lower, with benchmark indices Sensex and Nifty plunging around 2 per cent in early trade amid rising global risk aversion.
In Asian markets, major indices traded in the red, with key indices -- the Nikkei, the Hang Seng, and the KOSPI -- declining over 1 per cent each.