Crude oil prices surge on MCX as Israel-Iran war escalates reaching ₹6,163 per barrel

Crude oil prices surged on the Multi Commodity Exchange (MCX) Tuesday afternoon, driven by intensifying hostilities between Israel and Iran that continue to raise alarms over potential disruptions in global oil supply from the Middle East.

As of 2:31 PM IST, MCX crude oil futures were trading at ₹6,163 per barrel, marking a sharp gain of ₹115 or 1.85% from the previous close of ₹6,048. Earlier in the day, prices had opened higher at ₹6,189 and hit an intraday high of ₹6,203 amid mounting geopolitical concerns.

The latest spike follows reports of renewed missile exchanges, with Iranian media confirming explosions and heavy air defense activity in Tehran. In parallel, air raid sirens were heard across Tel Aviv, signaling incoming Iranian missile attacks. Adding to the tension, U.S. President Donald Trump called for the immediate evacuation of foreign nationals from Tehran, a move interpreted as a warning of potential further escalation.

Crude oil prices and market anxiety

Global markets mirrored the anxiety. As of 2:44 PM IST on June 17, 2025, Brent crude futures are trading at $73.45 per barrel, while U.S. West Texas Intermediate (WTI) crude is at $71.99 per barrel. Both benchmarks have risen over 2% during the session, driven by escalating geopolitical tensions between Israel and Iran, which are raising concerns about potential disruptions to oil supplies from the Middle East.

This comes on the heels of a more than 2% fall in MCX crude oil prices on Monday, when reports briefly suggested Iran was exploring options for de-escalation. However, with the conflict now entering its fifth day, the likelihood of a diplomatic breakthrough appears to be fading.

In a related development, the Organization of the Petroleum Exporting Countries and its allies (OPEC+), which collectively account for nearly half of global oil production, maintained their view that the world economy will stay resilient through the second half of 2025. However, the group also cut its forecast for supply growth from non-OPEC countries in 2026, adding to concerns of a tightening global oil market.

With tensions showing no sign of abating, crude oil prices are expected to remain volatile, and energy markets worldwide are bracing for further geopolitical shocks.