Global energy markets witnessed a sharp jolt on Monday as crude oil prices surged nearly 10 per cent following rising geopolitical tensions in the Middle East. The spike comes in the wake of recent military strikes by the United States and Israel on Iran, triggering fears of disruptions in key global oil supply routes.

The sudden rally has sent shockwaves across financial markets, with traders closely monitoring developments in the region.

Brent and WTI Record Sharp Gains

When Asian markets opened, Brent crude futures jumped more than 12 per cent at one point, briefly nearing $82 per barrel compared to Friday’s closing price of $73. By mid-morning, Brent stabilised at around $79.30 per barrel — still reflecting a gain of nearly 9 per cent.

Meanwhile, US crude and West Texas Intermediate (WTI) also recorded strong gains. US crude rose approximately 12 per cent to touch $75 per barrel, while WTI climbed nearly 8 per cent to around $72 per barrel.

Overall, international crude benchmarks have risen nearly 20 per cent since January, highlighting mounting volatility in global energy markets.

Strait of Hormuz in Focus

The primary trigger behind the surge is growing concern over the strategic Strait of Hormuz — one of the world’s most critical oil transit routes. Bordered by Iran, Oman, and the United Arab Emirates, the narrow waterway facilitates the transport of nearly 15 million barrels of oil per day, accounting for roughly one-fifth of global supply.

Energy analysts warn that any potential blockade or military escalation affecting the strait could severely disrupt exports from major producers such as Saudi Arabia and Iraq.

Impact on India’s Energy Security

For India, heavily dependent on crude imports routed through the Strait of Hormuz, the situation presents significant economic risks. In New Delhi, petrol is currently priced at ₹94.77 per litre, while diesel stands at ₹87.67 per litre.

Industry data suggests that every $1 increase in Brent crude exerts upward pressure of around 55 paise per litre on petrol and 52 paise per litre on diesel in the retail market. Continued price escalation could strain household budgets and increase costs across sectors such as aviation, paints, tyres, and logistics.

The government may consider measures such as reducing excise duties or adjusting margins of oil marketing companies to cushion the impact.

Markets on Edge

Energy experts caution that further escalation depends largely on Iran’s response and the stability of supply chains in the Gulf region. Any prolonged disruption could trigger a sharp spike in global fuel prices, inflationary pressures, and heightened economic uncertainty.

As the geopolitical crisis unfolds, India’s energy security strategy is likely to face renewed scrutiny, with growing calls to diversify crude sourcing and strengthen strategic reserves to mitigate external shocks.