New Delhi, March 2 || Global crude oil prices went up more than 7 per cent on Monday as war in West Asia escalated, following US and Israeli military strikes on Iran.
Brent crude futures prices surged to $82.37, the highest since January 2025. Brent crude oil price rallied 7.60 per cent to $78.41 a barrel, while the US West Texas Intermediate (WTI) crude futures rallied 7.19 per cent to $71.86.
Iran has closed navigation through the crucial Strait of Hormuz, prompting governments and refiners to assess oil stockpiles, according to reports.
Meanwhile, OPEC has agreed to resume oil production increases next month amid US-Israeli strikes on Iran. Key members led by Saudi Arabia and Russia will add 206,000 barrels a day.
Analysts said the US–Israel strikes on Iran represent a significant geopolitical shock, raising the global oil risk premium and boosting demand for safe haven assets like gold and silver.
“For India, with close to 90 per cent dependence on imported crude, any sustained rise in Brent prices quickly feeds into higher fuel costs, broader inflation, and a wider current account deficit. This complicates the RBI’s disinflation path and could delay rate cuts,” said Rajeev Sharan, Head – Criteria, Model Development and Research, Brickwork Ratings.
Indian equities have already turned risk off, with expectations of more volatility, foreign investor outflows, and pressure on autos, financials, and energy intensive sectors.