New Delhi, 11 September (H.S.): Crude oil prices continued their upward trajectory in the international market on Friday. Brent crude moved close to the $110-per-barrel mark, while West Texas Intermediate (WTI) crude also approached the $105-per-barrel level.

Brent crude crossed the $108-per-barrel mark for the first time since April 15, touching an intraday high of $108.77 per barrel. Similarly, WTI crude climbed close to $105 per barrel, reaching an intraday high of $104.46 per barrel.

Brent crude opened trading unchanged at $107.63 per barrel on Friday. Shortly after trading began, it slipped to $107.16 per barrel for a brief period, but soon regained momentum. The surge pushed Brent above $108 per barrel to an intraday high of $108.77. However, prices subsequently declined, taking the benchmark below Thursday’s closing level. At 11:30 a.m. IST, Brent crude was trading at $106.66 per barrel, down $0.97, or 0.90 percent.

WTI crude, meanwhile, opened at $103.91 per barrel, gaining $1.43 from the previous close. Immediately after the opening, it fell briefly to $101.57 per barrel, but subsequently picked up momentum. Within a short period, it climbed to $104.46 per barrel. Prices later retreated. At 11:30 a.m. IST, WTI crude was trading at $101.72 per barrel, down $0.76, or 0.75 percent.

The situation in West Asia has continued to deteriorate as the United States and Iran have repeatedly carried out attacks against each other and issued warnings of further stringent measures. Tensions in the region have escalated significantly, particularly following an alleged US attack on five Iranian oil tankers near the Persian Gulf and Oman, followed by Iranian strikes on US facilities in Jordan. Iran has also warned that ships could be targeted in the Strait of Hormuz, resulting in a complete halt to maritime traffic through the strategic waterway.

Amid these tensions, Yemen’s Houthi rebels have expanded the scope of their blockade and attacks on Saudi Arabia’s western ports, deepening the maritime trade crisis in the Bab el-Mandeb Strait and the Red Sea. Crude oil supplies from Gulf countries have been severely disrupted due to the escalating tensions. With growing threats to cargo vessels using both the Persian Gulf and Red Sea routes, crude oil prices have surged sharply. Crude prices have risen by nearly 13 percent in the first five trading days of this week alone.

On September 5, the final trading day of last week, Brent crude stood at $96.10 per barrel. Following the Sunday holiday, from Monday, September 7, through Friday’s trading session, its price has risen by $12.67 per barrel, or 13.18 percent. Similarly, WTI crude has become $12.37 per barrel, or 13.43 percent, more expensive, rising from $92.09 per barrel.

The sustained increase in crude oil prices is also expected to have a significant and adverse impact on the economies of oil-importing countries such as India. The surge in crude prices has raised concerns about higher inflation as well as a possible impact on the country’s GDP growth rate. More importantly, the Indian rupee could face further depreciation, while the stock market could also come under significant selling pressure.

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Hindusthan Samachar / Jun Sarkar