New Delhi, 20 July (H.S.): Crude oil prices in the international market have once again crossed the $90 per barrel mark amid escalating tensions in West Asia and a complete disruption in oil transportation through the Strait of Hormuz.

Brent crude climbed to a one-and-a-half-month high of $90.73 per barrel on Monday after breaching the $90 level. Similarly, West Texas Intermediate (WTI) crude also moved above $85 per barrel amid growing concerns over global supply disruptions.

Brent crude began the day’s trading with a gain of $2.60 per barrel at $90.70 per barrel. Shortly after opening, prices briefly slipped below the $90 mark to $89.91 per barrel but soon recovered and surged again to reach $90.73 per barrel.

At around 11:15 am Indian Standard Time, Brent crude was trading at $90.58 per barrel, up $2.48 per barrel or 2.81 per cent in the international market.

WTI crude also opened higher, gaining $2.14 per barrel to trade at $84.63 per barrel. During the session, it briefly declined to $83.61 per barrel before recovering sharply. The benchmark later crossed the $85 mark and touched $85.39 per barrel. However, it witnessed a slight correction afterwards.

At around 11:15 am IST, WTI crude was trading at $84.46 per barrel, up 2.39 per cent.

Market experts said that rising tensions in West Asia have renewed concerns over crude oil supply disruptions. Anil Bhansali, Executive Director at Finrex Treasury Advisors LLP, said that the intensifying conflict between the United States and Iran has significantly reduced the possibility of peace in the region.

Bhansali said that crude oil supplies through the Strait of Hormuz have been completely disrupted due to the ongoing conflict. He highlighted that a significant portion of global crude oil shipments passes through this strategic waterway, with more than 70 per cent of crude exports from Gulf countries transported through the route.

The growing confrontation between Washington and Tehran has affected the movement of oil tankers through the Strait of Hormuz, raising fears of another major disruption in global energy supplies. These concerns have triggered a sustained rise in international crude oil prices.

Bhansali warned that higher crude oil prices could become a major challenge for oil-importing countries like India. Rising import costs could widen India’s current account deficit and put pressure on fiscal deficit targets.

He added that expensive crude oil could weaken the Indian rupee, fuel inflation and increase foreign capital outflows. In such a situation, the government may have to take difficult decisions regarding subsidies, interest rates and the rupee-dollar exchange rate to manage the impact on the economy.

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Hindusthan Samachar / Jun Sarkar