Brent crude has rocketed to $104 a barrel — its highest close since May — as fighting between the US and Iran escalates sharply in the Persian Gulf, threatening one of the world’s most critical oil chokepoints.
Brent futures gained 3.4% to settle at $101.21 earlier this week before extending the rally past $104, while US WTI crude advanced to around $96 a barrel. The surge came after the US military destroyed five Iranian crude oil tankers in retaliation for attempted attacks on an American warship — the warship itself evaded the strike with no casualties, according to US Central Command.
The immediate fear gripping energy markets is disruption to the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil supply passes daily. Any sustained interruption there ripples straight through to pump prices, airline fuel costs, and import bills for oil-dependent economies like India, which sources the vast majority of its crude from overseas.
Fuel prices are already hitting new records in parts of the US, and traders are bracing for more volatility as the conflict shows no clear sign of de-escalating. For Indian markets, a sustained crude spike is a double hit — it worsens the trade deficit and adds to imported inflation just as the RBI weighs its next policy move.
Data cross-checked across multiple independent market sources. This is for informational purposes only and is not investment advice.
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