New Delhi, 23 April (H.S.):
International crude‑oil prices have extended their sharp upward run for a fourth consecutive day, lifted by intensifying geopolitical tensions in West Asia and a near‑complete freeze in shipping through the Strait of Hormuz. Brent crude has surged above the psychologically critical 105‑dollar barrier, while West Texas Intermediate (WTI) has climbed close to the 100‑dollar mark, underscoring growing concerns about a prolonged supply‑side squeeze.
Brent crude, the global benchmark, jumped to 105.86 dollars per barrel in early trade, briefly breaching the 105‑dollar level before edging slightly lower. By 9:15 a.m. Indian time, the contract was trading at 103.76 dollars per barrel, up 1.80 percent on the day, having opened above 100 dollars at 101.66 dollars per barrel.
Similarly, WTI crude opened at 92.69 dollars per barrel and quickly advanced to 97.22 dollars per barrel, before easing to 94.97 dollars per barrel, still reflecting a 2.13‑percent gain.
The surge is being driven by the virtual standstill in tanker traffic via the Strait of Hormuz, a strategic chokepoint that carries about a fifth of global oil exports. The breakdown of peace talks between the United States and Iran has left both sides digging in: Washington has maintained a naval blockade aimed at coercing Tehran, while Iran has refused to allow Hormuz to be used for international trade, arguing that it will not bow to external pressure.
On Wednesday, Iranian gunboats fired on cargo vessels near the Omani coast, a move widely interpreted as an attempt to signal resolve and deter freedom‑of‑navigation operations. The incident has further unnerved shipping and energy markets, as insurers and charterers reassess risk and many carriers reroute or delay voyages, adding to freight costs and delays.
Analysts warn that the hardening stance of both Washington and Tehran makes an immediate resumption of normal Hormuz‑based oil flows extremely unlikely. President Donald Trump has announced a ceasefire, yet at the same time insisted on keeping the Strait under pressure, effectively prolonging the supply‑disruption scenario.
The combination of constrained Persian‑Gulf exports, elevated insurance premiums, and rerouted tankers has tightened the global crude market, translating into persistent upward pressure on prices.
Earlier in the conflict, triggered by the outbreak of hostilities in late February, oil prices had already begun to climb above 100 dollars per barrel for Brent, with WTI touching the triple‑digit mark for the first time since the early‑2020s demand shock. The current spike suggests that markets are pricing in not just short‑term disruption, but the risk of a drawn‑out standoff that could keep crude in a structurally elevated band for months.
The implications are far‑reaching. Higher crude prices feed through into fuel, freight and input‑cost inflation, adding to the burden on oil‑importing economies like India, Japan and many emerging‑market nations. Central banks and fiscal authorities are now under pressure to recalibrate their growth and inflation outlooks, even as consumers brace for pricier petrol and air‑ticket fares. As the Hormuz‑centred stand‑off shows no sign of easing, crude‑oil markets are likely to remain volatile, with Brent and WTI remaining sensitive to every headline from the Persian‑Gulf littoral.
---------------
Hindusthan Samachar / Jun Sarkar
