Crud͏e Oil Pri͏ces Surge Above $100 Amid I͏ra͏n-͏Israel ͏Tensions

M͏umbai, March 12: ͏Brent crude ͏oil fu͏tures surged past USD 100 p͏er barrel ͏on ͏T͏hursday am͏id e͏scalating tensions in the͏ ͏Middle Ea͏st. The spi͏ke͏ follows ͏attacks on oi͏l ta͏nker͏s i͏n Ira͏qi waters and gro͏wi͏n͏g conflict between͏ ͏Ir͏an and Isra͏el͏,͏ r͏aising fears o͏ve͏r͏ gl͏oba͏l oi͏͏l supply͏. A͏͏nalysts warn that͏ co͏n͏͏ti͏nued͏͏ ͏͏disruption͏s͏, particula͏rl͏͏y through the st͏rategic ͏Strai͏t of Horm͏u͏z,͏ coul͏d furthe͏r push crude prices,͏ hei͏ghten͏ing ͏p͏͏r͏essure on͏ ͏ener͏gy-impor͏ting n͏ations including Indi͏a.

Brent Crude Hits $100.20 After T͏a͏nker Attacks Halt͏ Iraqi Termi͏nals

Br͏ent crude closed at U͏SD 100.20 per barrel, up USD ͏8.22 or͏ 8.94% from the previous close of USD 91.98. The contract opened͏ at USD 96.͏84 and tr͏aded between U͏SD͏ 96.96 and͏ USD 101.͏5͏9, registering a͏ 10.45͏%͏ gai͏n fr͏om the prior ͏close to the day’s ͏high. Brent has r͏ise͏n 48.33% in th͏e past month͏ ͏a͏nd͏ 41.͏31% year-͏on-ye͏a͏r, re͏flecting height͏ened sup͏p͏ly concer͏ns amid regional instability.

Iran’s Explosive-Laden Boats Attack Gulf Tankers, Risking $200 Crude

Reports indicate that Iranian forces targeted three merchant vessels in Gulf waters on Wednesday. Ebrahim Zolfaqari, spokesperson for Tehran’s Khatam al-Anbiya military command, warned that oil prices could reach USD 200 per barrel, stating any tanker bound for the US, Israel, or allied nations is a legitimate target. These attacks forced Iraq to suspend operations at major oil terminals, disrupting a crucial segment of global crude supply.

WTI Crude Rises To $94.68 Amid Shipping Route Vulnerability

The April contract of West Texas Intermediate (WTI) crude on the NYMEX jumped 8.85% to USD 94.68 per barrel, mirroring Brent’s surge. Attacks on Iraqi fuel oil tankers underscored the vulnerability of shipping lanes critical to global supply. The Strait of Hormuz, a chokepoint for nearly 20% of global oil supply, remains central to market concerns, as even isolated disruptions can rapidly affect crude prices worldwide.

IEA Releases Record 400 Million Barrels, Yet Prices Stay High

The International Energy Agency (IEA) announced a historic release of 400 million barrels from strategic reserves, the largest-ever single release. Despite this measure, crude prices remain elevated because the supply addition enters gradually, while geopolitical risks affecting production and shipping are immediate. Analysts note that the release highlights the seriousness of the conflict rather than calming markets, reinforcing fears of continued volatility in global energy.

Rising Crude Pressures Aviation, Hospitality, and Energy Sectors

Experts warn that sustained oil price increases are likely to impact industries such as aviation, hotels, and oil marketing. Rising geopolitical tensions and repeated tanker attacks have amplified concerns over crude supply, while the Strait of Hormuz remains a focal point for potential disruptions. Iran’s strategy of leveraging crude exports has heightened global energy market risks, affecting shipping costs and overall economic stability in oil-importing regions.

India’s Energy Imports Highly Exposed to Middle East Disruptions

India imports nearly 90% of its crude oil, with around 40% sourced from the Middle East through the Strait of Hormuz. The country also relies on liquefied natural gas (LNG), with 68.42% of imports coming from Qatar, UAE, and Oman combined. Disruptions in these supply routes could strain domestic fuel availability and increase costs, despite India welcoming the IEA’s strategic release as part of global efforts to stabilise markets.

Market Sensitivity Remains Amid Ongoing Iran-Israel Conflict

Even after emergency oil releases, crude prices remain sensitive to geopolitical developments. Analysts highlight that continued conflict in West Asia, coupled with tanker attacks, may keep markets on alert. Any further escalation could tighten global supply, affecting transportation costs, inflation, and economic activity for oil-importing nations. Strategic energy chokepoints like the Strait of Hormuz remain critical, as interruptions could have ripple effects across global supply chains.

Fuel Prices Remain Steady; Hyderabad and Kolkata Lead in Costs

According to the latest notification from state-run oil marketing companies, petrol and diesel prices in major Indian cities remained unchanged on Thursday. In Delhi, petrol is priced at ₹94.77 per litre and diesel at ₹87.67, while Mumbai records petrol at ₹103.54 and diesel at ₹90.03. Kolkata and Hyderabad continue to report the highest rates, with petrol at ₹105.41 and ₹107.50, and diesel at ₹92.02 and ₹95.70, respectively. These variations are largely driven by differences in state taxes, with Delhi and Lucknow remaining among the cheaper fuel markets.

The surge in crude oil above USD 100 per barrel underscores the vulnerability of global energy supply to geopolitical risks. Energy-importing nations, particularly India, may face rising costs and potential supply disruptions. Continued monitoring of developments in the Middle East and strategic shipping routes is essential for managing fuel availability, planning logistics, and mitigating the broader economic impact of sustained high oil prices.