The renewed geopolitical tension between the US and Iran has shaken global energy markets. The Washingtons reported moving to block vessels linked to Iran amid a sharp surge in crude oil prices on Monday. This is causing an 8% price hike in the Strait of Hormuz, a critical passage for global oil shipments. The development quickly created fears of supply disruption and pushed traders back into risk mode.
Brent crude climbed $6.71 to $101.91 per barrel while US West Texas Intermediate jumped $7.59 to $104.16. Both benchmarks erased last session’s mild losses and surged back above the key $100 level. In India MCX crude mirrored the global rally and climbed nearly 7.4% to ₹9,830 per barrel.
The rally came after US President Donald Trump confirmed naval forces would begin blocking Iranian maritime access following failed negotiations between Washington and Tehran. The decision has raised concerns that an already fragile ceasefire could collapse. Iran warned any military presence near Strait would be treated as ceasefire violation and will increase risk of escalation.
Despite the sharp spike the larger trend still looks uncertain. Prices had recently slipped from highs near ₹11,000 and are now moving within narrower range. Analysts say resistance is seen around ₹9,350–₹9,400 while ₹8,800–₹8,850 is acting as immediate support. It suggests continued volatility in the short term.
Oil markets are now dependent on headlines from the Middle East. This reflects how quickly market sentiment can change when an important supply route like Strait of Hormuz comes into question. Now fuel price will be sustained or changes will be decided by geopolitical tensions that evolve in coming days. Whether this move sustains or fades will depend entirely on how geopolitical tensions evolve this week.
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