The crude oil prices on Thursday surged back above $100 per barrel amid the renewed de-escalation efforts to end the war in Iran and the opening of the Strait of Hormuz for global shipping.
The Iranian side has so far rejected US President Donald Trump’s offer of conceding defeat and agreeing to a ceasefire offered by the United States.
On Thursday morning, the Brent Crude, which remains a marker of the international crude oil prices, crossed $103 per barrel with a rise of 1.62 per cent. Meanwhile, the West Texas intermediate futures also rose to $91 per barrel.
The Indian energy sector is facing shortages; however, the Ministry of External Affairs rejected claims suggesting that an Indian-origin oil tanker had paid Iran in Chinese currency to be allowed to pass through the global choke point.
Earlier, crude futures tanked once the reports of a ceasefire between the US and Iran emerged from Pakistan, Egypt, and Türkiye.
Iranian Foreign Minister Abbas Araghchi has said that the Strait remains open for all except for the United States and its allies in the war. Meanwhile, it is widely reported by international outlets that multiple European nations are negotiating with Iran on the release of their oil tankers from the Strait of Hormuz.
The Iran War has now entered day 27; the stoppage of tankers laden with crude oil and LNG has prompted a supply shortage for several Asian countries depending on Gulf nations for their supplies.
The disruption has triggered emergencies in Japan and South Korea, which have sought to diversify their imports of oil and LNG supplies amid the ongoing war.
The rising cost of crude oil has put pressure on Indian oil market companies (OMCs) to increase Aviation Turbine Fuel (ATF) from the 1st of April. If that turns into reality, the aviation sector will be forced to raise the airfares due to rising operations-related costs and decreasing profits.
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