New Delhi, Mar 2: Global crude oil prices spiked sharply on Monday as escalating conflict in West Asia rattled energy markets. The surge followed coordinated US and Israeli military strikes on Iran, which triggered fears of supply disruptions.

Brent crude futures jumped 7.60 per cent to $78.41 a barrel before climbing further to $82.37, the highest level since January 2025. US West Texas Intermediate (WTI) crude futures rose 7.19 per cent to $71.86. Analysts warned that continued escalation could push Brent above $90 per barrel, or even past $100 in the event of a broader regional conflict.

Iran has closed navigation through the Strait of Hormuz, a critical chokepoint for global oil flows. Around 20 per cent of global oil shipments pass through the strait, including over 40 per cent of India’s crude imports. The closure has prompted governments and refiners worldwide to reassess stockpiles and prepare for potential supply shocks.

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In response to market volatility, OPEC announced plans to resume production increases next month. Led by Saudi Arabia and Russia, the group will add 206,000 barrels per day, aiming to stabilize supply amid geopolitical uncertainty.

India, which relies on imports for nearly 90 per cent of its crude needs, faces significant economic risks from rising oil prices. Higher Brent prices feed directly into fuel costs, inflation, and the current account deficit. Rajeev Sharan of Brickwork Ratings noted that the Reserve Bank of India’s disinflation path could be complicated, potentially delaying rate cuts.

Indian equities have already turned risk-off, with foreign investor outflows expected and pressure mounting on autos, financials, and energy-intensive sectors. JM Financial Institutional Securities estimated that every $1 rise in crude adds $2 billion to India’s annual import bill, straining the trade balance.

Gold and silver are likely to remain supported as investors seek safe havens amid heightened geopolitical risks. Analysts said the conflict premium will ease only when there is clarity on Iran’s leadership, credible de-escalation channels, and assurance that vital oil routes remain open.

 (IANS)