New Delhi, 22 July (H.S.): Brent crude prices climbed to their highest level in two months on Tuesday as escalating tensions in West Asia and growing concerns over disruptions to crude oil supplies from the Gulf region continued to push international oil prices higher. Amid fears of an intensifying conflict between the United States and Iran, Brent crude crossed the $92-per-barrel mark, while West Texas Intermediate (WTI) crude also moved above $85 per barrel once again.

In the international market, Brent crude opened trading at $91.46 per barrel, up by $0.45 from the previous session. Soon after trading began, prices surged to an intraday high of $92.63 per barrel, marking the highest level in the past two months. Although prices eased slightly during the session, Brent crude was trading at $92.25 per barrel at 11:30 a.m. IST, up $1.34 or 1.48 per cent.

Similarly, West Texas Intermediate (WTI) crude opened at $84.59 per barrel, gaining $0.15 from the previous close. It later climbed to an intraday high of $85.75 per barrel before witnessing a slight correction. At 11:30 a.m. IST, WTI crude was trading at $85.57 per barrel, up $1.23 or 1.46 per cent.

Crude oil prices have remained on an upward trajectory following the end of the ceasefire between the United States and Iran and the renewed escalation of hostilities in West Asia. Last week, Brent crude crossed the $87-per-barrel mark, reaching its highest level in a month, while WTI crude moved above $81 per barrel. Although prices witnessed a brief period of consolidation for three trading sessions, they have resumed their upward momentum over the last four sessions, lifting Brent crude to its highest level in two months.

Market experts believe that the worsening geopolitical situation in West Asia has once again heightened concerns over disruptions to global crude oil supplies.

TNV Financial Services Chief Executive Officer Tarkeshwar Nath Vaishnav said the conflict between the United States and Iran continues to intensify, with both sides carrying out sustained attacks. He added that Iran-backed Houthi rebels have also announced their involvement in the conflict and warned that unless US military operations cease, they would block maritime traffic through the Red Sea and the Bab-el-Mandeb Strait. The Houthis have also announced a maritime ban targeting Saudi Arabia and warned shipping companies against calling at Saudi ports.

Vaishnav further said that the Strait of Hormuz has already been severely disrupted due to the ongoing conflict between the United States and Iran. If shipping through the Red Sea and the Bab-el-Mandeb Strait is also halted, global crude oil supplies would face significant disruptions. In particular, crude exports from Saudi Arabia and Yemen could be severely affected, which is a key reason behind the recent surge in international oil prices.

According to Vaishnav, sustained high crude oil prices could pose serious economic challenges for major oil-importing nations such as India. If geopolitical tensions continue to keep oil prices elevated for an extended period, India's current account deficit could widen significantly, while fiscal deficit targets may also come under pressure. Higher crude prices could further weaken the Indian rupee, fuel inflationary pressures and accelerate foreign capital outflows from the country.

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Hindusthan Samachar / Jun Sarkar