Oil Price Hike: Amid rising concerns over reports of an ‘extended’ blockade by the United States on Iranian exports and stalled nuclear negotiations, oil prices on Wednesday jumped to their highest levels since 2022. The price of Brent oil surged past $120 a barrel, briefly hitting $122 as ceasefire negotiations between Washington and Tehran stalled, and the Strait of Hormuz remained heavily disrupted amid closure.
Concerns grow among oil traders
Amid worries brewing over an escalation in the US-Iran war, sources said that Chevron chief executive Mike Wirth and other energy executives met with President Donald Trump to address measures to limit the fallout and impact on American consumers. Oil traders are also concerned as several countries are now entering a phase of exhausting their oil reserves due to the closure of Hormuz.
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How will it impact India?
Several nations, including India, South Korea, Japan, and Australia, are facing the brunt of the naval blockade, triggering disruptions in supply chains. This may continue the double-risk scenario of high crude oil prices and high interest rates,
Rising global crude oil prices can have a ripple effect on the Indian economy, as New Delhi relies heavily on imported oil to meet its energy requirements. Higher prices translate into increased petrol, diesel, and transportation costs.
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Prolonged Hormuz closure may push oil to $150
ETMarkets.com Nuvama Institutional Equities also indicated that an extended closure of the Strait could drive crude oil rates into the $110 to $150 range. The move follows an Axios report stating that Trump rejected Tehran’s proposal to reopen the global maritime chokepoint.
Crude oil price on April 30
According to reports, Brent crude for June delivery jumped 1.96% to $120 per barrel, while US West Texas Intermediate rose 0.2% to $107.09. The momentum builds on April 29’s sharp gains, when Brent crude increased by about 6%, and WTI soared 7%.
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