4% rise in crude oil
The increasing tension between America and Iran has had a direct impact on the crude oil market. There has been a sudden jump of 4 percent in the prices of crude oil in the global market, due to which oil (Brent Crude) has crossed $ 109 per barrel. Indian commodity markets have also not remained untouched by this global shock. Crude oil prices have gone up rapidly on the Multi Commodity Exchange (MCX). A strong increase of about 3.59 percent (Rs 349) was recorded in the deal of crude oil for delivery in the month of May. After this surge, the price reached the level of Rs 10,073 per barrel, in which there was heavy trading of 9,898 lots. The condition of July contracts was also similar. An increase of 3.68 percent was seen in it, after which the price became Rs 9,694 per barrel.
Global market is in bad shape, prices have risen
If we assess the situation in the international market, an atmosphere of panic is clearly visible there too. The July contract of global benchmark Brent crude jumped 3.35 percent to $ 109.26 per barrel. At the same time, the June delivery price of West Texas Intermediate (WTI) in New York also jumped by about 4 percent and crossed $ 105 per barrel. According to Kainat Chainwala, Commodity Research AVP, Kotak Securities, crude prices have seen an increase of more than 6 percent in this entire week. The biggest reason behind this huge increase is the deepening dispute between America and Iran, which has created the fear of huge disruptions in the supply chain.
Hormuz Strait becomes the biggest threat
The 'Strait of Hormuz' remains the main center of this entire geopolitical crisis. It is considered one of the most important oil trade routes in the world. Attacks on ships, seizure incidents and the US Navy blockade in this area have almost limited the movement of crude oil. The International Energy Agency (IEA) has given a serious warning that even if the tension subsides a bit in the coming months, there may remain a severe shortage of oil in the market till October. OPEC and the US Energy Information Administration (EIA) are also skeptical about the market balance of 2026. Experts clearly believe that unless the path to the Strait of Hormuz is completely cleared, it is very difficult for the crude inventory to normalize.
Common man's concern increased
Diplomatic efforts to improve the situation at the global level are also proving unsuccessful at present. On Friday, there was a conversation between US President Donald Trump and Chinese President Xi Jinping. The market was hoping that this would lead to some solution to the Iran dispute or energy security issue, but it ended without any result. Analysts say that until a credible peace agreement is reached, this pressure of geopolitical risk will remain in the crude oil market. What this whole news means for the consumer is that if crude oil continues to become expensive like this, the cost of transportation will increase. This will have a direct impact on the prices of food items, vegetables and every other everyday item.
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