New Delhi, 28 April (H.S.):
International crude oil prices registered fresh gains on Tuesday despite Iran’s latest peace proposal aimed at easing West Asia tensions, with Brent crude edging close to the $110‑per‑barrel mark and West Texas Intermediate (WTI) breaching the $97 level. Markets remained on edge as the standoff between the United States and Iran over the Strait of Hormuz continues to weigh on supply confidence, even as the two sides talk of reviving stalled talks.
Brent and WTI climb, then trim gains
Brent crude opened at around $108 per barrel, quickly jumping to $109.46 before briefly slipping to $107.98 as traders took partial profits. By 9:00 a.m. Indian time, Brent was trading at $109.20, up about 0.90 percent from the previous close, maintaining its position just below the psychologically important $110 threshold.
WTI crude commenced the session at $96.62, dipped temporarily to $96.24, then rallied to $97.55 per barrel within the first hour of trading. By 9:00 a.m. local time, the contract had settled at $97.29, reflecting a gain of roughly 0.95 percent. The twin‑price surge underscores persistent anxiety over potential disruptions in one of the world’s key oil‑shipping chokepoints.
The second round of US–Iran peace talks has been postponed, and the two countries remain locked in a high‑stakes standoff over the Strait of Hormuz, through which almost 20 percent of global oil and gas shipments transit. As a result, flows via the strategic waterway are effectively stalled, with the United States maintaining a naval blockade around Iran and Tehran insisting on shutting the strait to international traffic.
Iran has floated a new proposal to restart negotiations, and Washington has indicated it is considering the offer. Yet, despite the diplomatic overtures, crude‑oil prices show no sign of a sustained downward correction, as traders remain wary that even a nominal ceasefire may not translate into a quick restoration of full oil‑infrastructure operations.
Reopening closed wells, relocating crews and vessels, and rebuilding refinery inventories are expected to take an extended period, keeping the physical‑supply outlook tight for months.
The war in West Asia, which erupted in late February, has upended global petroleum‑based energy markets. The near‑closure of the Strait of Hormuz has slashed output and shipments from the Persian Gulf, pushing crude prices sharply higher. WTI alone has climbed by about 70 percent since the conflict began, amplifying inflationary pressures and fiscal strains worldwide.
Industry experts warn that if elevated crude prices persist, they could significantly widen India’s current‑account deficit, threaten the fiscal‑deficit target, and weaken the rupee. Higher fuel costs are also liable to stoke inflation, increase foreign‑capital outflows, and inject volatility into the stock market as policymakers face tough choices on subsidies, interest rates, and exchange‑rate management. Tarakeshwar Nath Vaishnav, CEO of TVH Financial Services, cautioned that sustained high oil prices may force the government into sharper policy trade‑offs at a time when India is already grappling with slowing global growth and shifting capital flows.
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Hindusthan Samachar / Jun Sarkar
