Crude oil prices steadied today after a sharp surge in the previous session amid escalating tensions in West Asia.
According to media reports, US crude futures rose 1.4 per cent to 72.23 dollars a barrel, while Brent crude gained nearly 1.9 per cent to trade at 79.2 dollars in the early trade.
The spike follows Iran’s retaliatory strikes on oil and gas facilities and concerns over supply disruptions through the strategic Strait of Hormuz, a key route for global energy shipments.
Around 20 per cent of global oil flows pass through the strait, including over 40 per cent of India’s crude imports.
Investment bank Morgan Stanley has warned that Brent crude could touch 120 dollars per barrel in case of prolonged disruption.
According to media reports, US crude futures increased by 1.4 per cent to reach 72.23 dollars per barrel. At the same time, Brent crude prices went up by nearly 1.9 per cent, trading at around 79.2 dollars per barrel in early trade.
The recent rise in oil prices comes after Iran carried out retaliatory strikes on oil and gas facilities in the region. There are also serious concerns about possible supply disruptions through the Strait of Hormuz. This narrow waterway is one of the most important routes for global oil transport.