New Delhi, 22 April (H.S.):

Crude oil prices remain elevated amid unrelenting West Asian tensions, with Brent crude hovering around $98 per barrel despite the US-Iran ceasefire extension, underscoring persistent supply vulnerabilities in the Strait of Hormuz.

International markets opened Wednesday with Brent crude trading near $98 per barrel, reflecting a 10% surge over the past two days that has propelled it close to the $100 psychological threshold. West Texas Intermediate (WTI) crude mirrored the firmness, trending around $90 per barrel, as traders weighed geopolitical risks against temporary de-escalation signals.

Experts attribute this tenacity to supply disruptions rather than mere demand fluctuations; the Hormuz chokepoint—handling 21% of global petroleum flows—remains a flashpoint, with US naval blockades and Iranian vessel detentions stifling flows from key producers like Saudi Arabia and Iraq.

Analysts caution that without normalized transit through Hormuz and a durable peace accord, elevated prices could endure, stoking global inflation as refiners scramble for alternatives that add weeks to shipping timelines. Early crisis peaks saw Brent spike to $120 per barrel, followed by partial retreats on ceasefire announcements, yet underlying shortages perpetuate volatility.

This precarious equilibrium threatens economic ripple effects, particularly for import-dependent economies like India, where sustained crude highs exacerbate trade deficits and fuel cost pressures.

---------------

Hindusthan Samachar / Jun Sarkar