New Delhi: Crude oil prices climbed sharply on Thursday, rising by Rs 445 to a record Rs 10,571 per barrel in futures trade as global markets tracked a fresh spike in Brent and growing concern over escalation in West Asia. On the Multi Commodity Exchange, crude oil for May delivery rose by Rs 445, or 4.39 percent, to touch an all-time high of Rs 10,571 per barrel. The contract extended its gains for a fourth straight session.
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Analysts said the rise was driven by reports that US President Donald Trump is considering military options against Iran, stoking fears of a wider conflict in the region.
According to the reports, the briefing suggested Trump was weighing major combat operations either to break the deadlock in negotiations or to deliver a final blow before the war ends.
In overseas trade, Brent oil futures for the June contract advanced for the ninth straight session, gaining USD 4.73, or 3.89 percent, to hit an intra-day high of USD 126.41 per barrel. That was the highest level seen since March 8, 2022.
West Texas Intermediate (WTI) for the same contract also moved higher, climbing by USD 4.05, or 3.79 percent, to an intra-day high of USD 110.93 a barrel in New York.
Market experts said the rally was also supported by stalled ceasefire talks between the US and Iran, along with the surprise exit of the United Arab Emirates from the Organisation of the Petroleum Exporting Countries (OPEC).
Earlier, Trump had rejected Tehran’s latest proposal to reopen the Strait of Hormuz, indicating that the naval blockade would remain in place until a nuclear agreement is reached.
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Kotak Securities said in a note that escalating US pressure on Iran, including the possible extension of a naval blockade and stricter enforcement action on tanker movements, has heightened concerns over constrained flows through the Strait of Hormuz.
The brokerage added that a sharp draw of 6.2 million barrels in US crude inventories, along with declines in refined product stocks, also lent support to prices by pointing to resilient demand.