MCX crude spikes 10% with Brent, WTI as war fears grip energy markets

Crude Oil Prices Today: Crude oil prices surged sharply on Monday, climbing more than 7 per cent to multi-month highs, as the conflict in the Middle East intensified following US and Israeli military strikes on Iran. Fresh concerns over supply disruptions emerged after Iran said navigation through the strategically vital Strait of Hormuz had been shut, with reports of damaged tankers and disrupted shipments from the key oil-producing region.

Global benchmark Brent crude jumped to as high as $82.37 a barrel, its highest level since January 2025, before settling up 7.60 per cent at $78.41. US crude WTI crude rallied 7.19 per cent to $71.86 a barrel as traders priced in escalating geopolitical risks and potential supply shocks.

On the domestic bourse, MCX crude oil for March expiry opened higher by Rs 118, or 1.93 per cent, at Rs 6,210 per barrel, tracking the sharp overnight rally in global prices.

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Strait of Hormuz in focus

Tensions flared after Israel launched a fresh wave of strikes on Tehran, prompting Iran to respond with missile barrages across the region. At least three oil tankers reportedly suffered collateral damage near the Gulf coast, killing one seafarer, according to agency reports.

Iran later said it had closed navigation through the Strait of Hormuz, triggering alarm among Asian governments and refiners assessing emergency oil stockpiles. The narrow waterway is a critical artery for global energy trade, handling around 20 per cent of the world’s seaborne crude oil and a similar share of liquefied natural gas flows each day.

While the strait has not been formally blockaded, marine traffic data showed tankers building up on either side, as operators grew wary of missile attacks and rising insurance risks.

OPEC output hike adds complexity

The sharp rally in oil came despite an announcement from OPEC that it would resume oil production increases next month. Key producers led by Saudi Arabia and Russia agreed to add 206,000 barrels a day—higher than the 137,000 barrels a day monthly increases seen in the previous quarter.

The move, however, failed to calm markets, as traders focused on immediate supply risks from the Middle East rather than longer-term output plans. Iran and Iran-backed militias continued missile attacks on Israel and neighbouring states, while US and Israeli forces struck targets across Iran.

War outlook clouds markets

Iranian officials struck a defiant tone, with senior security figure Ali Larijani saying Tehran would not engage in negotiations with Washington. Meanwhile, US President Donald Trump reportedly suggested that the conflict may get dragged for several more weeks, adding to uncertainty around energy supplies.

Analysts warn that any prolonged disruption in the Strait of Hormuz could have far-reaching implications for global oil and gas markets, pushing prices higher and reigniting inflationary pressures across importing economies. For now, crude markets remain on edge, with volatility expected to stay elevated as the conflict shows little sign of easing.