Crude Oil Futures Surge Nearly 6% as US-Iran Tensions Stoke Supply Concerns

New Delhi, July 13: Crude oil futures rallied sharply on Monday, climbing nearly 6 per cent on the Multi Commodity Exchange (MCX), as renewed military tensions between the United States and Iran fueled fears of disruptions to global oil supplies through the strategically important Strait of Hormuz. The July crude oil contract on the MCX rose by Rs 384, or around 6 per cent, to settle at Rs 7,198 per barrel, with a business turnover of 19,274 lots. The August contract also gained Rs 359, or 5.25 per cent, to Rs 7,197 per barrel, recording a turnover of 4,139 lots. Market participants attributed the sharp rise to escalating geopolitical tensions after fresh military exchanges between the US and Iran over the weekend. Concerns intensified over the security of the Strait of Hormuz, a vital shipping route through which nearly one-fifth of the world’s crude oil supply is transported. According to market analysts, supply fears increased following reports of an Iranian strike on a commercial vessel in the region and Tehran’s subsequent announcement regarding the closure of the Strait. The US later carried out strikes on multiple Iranian targets while maintaining that international navigation through the waterway remained open. Pinky Yadav, Commodity Fundamental Analyst at Choice Broking, said MCX crude oil futures surged as traders reacted to growing concerns over potential supply disruptions from the Strait of Hormuz. She noted that reduced tanker movement through the region and uncertainty over oil exports continued to support higher prices. In the international market, Brent crude for September delivery climbed USD 3.59, or 4.72 per cent, to USD 79.60 per barrel on the ICE, while West Texas Intermediate (WTI) crude for August delivery advanced USD 3.47, nearly 5 per cent, to USD 74.88 per barrel on the NYMEX. Yadav added that hopes for renewed diplomatic engagement have weakened, with Tehran insisting on progress regarding Hormuz transit and oil exports before talks can resume. Meanwhile, the International Energy Agency (IEA) has warned that prolonged geopolitical tensions could slow the rebuilding of global oil inventories, raising concerns over tighter supplies in the months ahead.