Crude oil prices on Monday edged higher after the US and Iran exchanged retaliatory strikes since Friday morning, which continued until Sunday. Brent crude, the international benchmark, climbed 0.36 per cent to $72.25 a barrel on June 29, while US West Texas Intermediate crude advanced 0.71 per cent to $69.72 a barrel.
The gains were modest, but the direction was critical for import-dependent countries like India, Japan and South Korea, which primarily rely on supplies coming through the Strait of Hormuz.
Further disruption in West Asia shipping can also fluctuate oil prices, inflation expectations, and airline fares, raising logistics expenses and broader market sentiment.
For domestic investors, crude oil and its supply remain one of the important and reliable global indicators.
The fresh hike in prices occurred after the US and Iran targeted each other’s military bases in the region, triggering tensions about the disruption of oil and energy supplies.
Furthermore, US-based West Texas Intermediate had slipped below $70 a barrel on Friday for the first time since February 27, before recovering as geopolitical risk returned to trading screens.
As per the latest market data, talks aimed at resolving the conflict were kept on hold after the two sides exchanged military strikes.
The action followed Tehran’s reported attacks on commercial shipping near the Strait of Hormuz, one of the world's most important energy corridors.
The Strait of Hormuz links the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is critical for oil and liquefied natural gas shipments from major producers in the region.
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