Brent Crude Rises Above $86 on Fresh West Asia Tensions
New Delhi: Brent crude oil prices surged above $86 per barrel on Tuesday, marking their highest level since June 12, as renewed geopolitical tensions in West Asia reignited fears of supply disruptions through the strategically important Strait of Hormuz.
The global oil benchmark had already jumped nearly 10% on Monday and extended its rally by as much as 3.6% in Tuesday's trading, reflecting growing concerns over the stability of crude exports from the Persian Gulf.
Strait of Hormuz Back in Focus
The latest spike in oil prices follows renewed uncertainty surrounding shipping activity in the Strait of Hormuz, one of the world's busiest energy transit routes.
During a temporary easing of restrictions, Iran exported at least 57 million barrels of crude oil. However, fresh tensions and renewed maritime restrictions have raised concerns that Iranian oil exports could once again be disrupted, tightening global supplies.
Earlier, hopes of easing regional tensions had erased much of the geopolitical premium in crude prices, but the latest developments have reversed that trend.
Indian Oil Marketing Stocks Under Pressure
The sharp rise in crude prices weighed on shares of India's major oil marketing companies (OMCs).
Stocks of Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL) traded lower as investors anticipated higher input costs that could impact company margins.
Brent Could Rise to $95 if Disruptions Continue
According to an analysis by Eurasia Group, shipping traffic through the Strait of Hormuz could fall sharply—from 30–50% of normal levels to just 5–15% if tensions escalate further.
The report estimates that Brent crude could climb toward $95 per barrel if supply disruptions persist over an extended period.
US Reimposes Pressure on Iranian Shipping
US President Donald Trump recently announced that Washington had reinstated a blockade targeting Iranian shipping in the Strait of Hormuz.
He also said the United States would seek reimbursement from countries benefiting from US naval protection in the region and indicated that the blockade would remain in place as part of broader efforts to limit Iran's maritime operations.
Markets Watching Supply Risks Closely
Energy markets remain highly sensitive to developments in West Asia, particularly any disruption to shipping routes that carry a significant share of the world's crude oil exports.
Analysts believe that continued geopolitical uncertainty could keep oil prices volatile in the coming weeks, with implications for inflation, fuel prices, and global economic growth.
