Big surge in crude oil! Hormuz waterway closed due to US-Iran conflict, pressure on petrol and diesel prices

Tezzbuzz Desk- There has been a sharp rise in international crude oil prices following the increasing tension in the Middle East and US-Israel attacks on Iran. On Monday, Brent crude futures reached $82.37 a barrel, the highest level since January 2025. US West Texas Intermediate crude (WTI) also reached $75.33 a barrel, its highest record since June 2025. According to the data, Brent crude rose by 7 percent, while WTI rose by 6.95 percent.

This rise in oil prices was directly caused by the security situation in the Middle East and the impact on shipments. Attacks by Iran and Israel damaged tankers and affected navigation in the Strait of Hormuz. During this period at least three tankers were targeted and one sailor died. Shipping companies and countries began reevaluating oil supplies.

Experts believe that if this instability in the Middle East continues, crude oil prices may soon reach $ 100 per barrel. ANZ analyst Daniel Hines said attacks on tankers in the Strait of Hormuz pose a major threat to supplies. Citi analysts predicted Brent would trade between $80 and $90 a barrel this week.

OPEC+ has agreed to increase output by 206,000 barrels per day for April, but except Saudi Arabia, other producers are producing at full capacity. RBC Capital analyst Helima Croft warned that the use of excess oil would be limited if key waterways were closed. More than 200 tankers have anchored in Hormuz and surrounding waters in the past 24 hours, according to shipping data.

The International Energy Agency (IEA) has been continuously monitoring this matter and is in touch with the main producer countries and governments. Under the IEA’s emergency strategy, developed countries can be helped in releasing petroleum reserves (SPR). Goldman Sachs analysts said global total oil stocks stood at 7.827 million barrels, roughly equal to the historical median of covering 74 days of global demand.

There will be no major impact on the prices of petrol and diesel in India at present. According to experts, until crude oil prices cross $100 per barrel, domestic fuel prices will remain stable. India has sufficient oil reserves and the option of importing crude oil from Russia is also available. If oil crosses $100 per barrel, petrol and diesel may increase by Rs 3-5.