International crude oil prices have climbed to their highest level in four weeks as tensions between the United States and Iran continue to increase. Fresh military action, attacks on oil tankers and new restrictions in the Strait of Hormuz have raised concerns about global oil supplies, leading to a sharp rise in crude prices.
Brent crude oil has moved above 80 US dollars per barrel, while weekly gains have crossed 10 per cent, reflecting growing fears that the conflict could disrupt the global energy market. Experts believe that geopolitical developments in the Middle East will continue to influence oil prices in the coming days.
The latest increase follows a series of military strikes carried out by the United States on Iranian targets. According to reports, the US launched its third consecutive night of attacks after President Donald Trump announced a new wave of military action against Iran. At the same time, Washington also announced fresh restrictions on Iranian trade through the Strait of Hormuz.
The Strait of Hormuz is one of the world's busiest and most important shipping routes for crude oil. A significant share of global oil exports passes through this narrow waterway every day. Any disruption in the region immediately raises concerns about oil supplies and often results in higher international prices.
Market experts believe that while crude oil is currently trading with a positive trend, further price movement will depend largely on how the conflict develops.
According to Ponmudi R, Chief Executive Officer of Enrich Money, crude oil faces immediate resistance between 81 and 82 US dollars per barrel, while the next important level is around 84 dollars. On the downside, if prices fall below 78 dollars, they could decline towards 75 dollars, with additional support between 72 and 73 dollars. He added that geopolitical events will continue to determine the market's short-term direction.
The latest rise in crude oil prices comes after the ceasefire between the United States and Iran reportedly ended. Both countries have resumed attacks on each other's military positions, increasing fears of a wider regional conflict.
Adding to these concerns, Iran has reportedly targeted oil tankers passing through the Strait of Hormuz. Any attack on commercial shipping in this strategically important route increases the possibility of supply disruptions, which usually leads to higher crude oil prices.
US President Donald Trump has also announced new measures affecting shipping through the Strait of Hormuz. According to reports, Iranian ships have once again been barred from using the waterway. In addition, all other cargo vessels passing through the Strait will now be required to make payments from a specified time.
Trump also proposed that countries benefiting from US efforts to secure the Strait of Hormuz should contribute to the costs of maintaining safety in the region. He suggested that the United States should receive reimbursement equal to 20 per cent of the value of cargo transported through the route.
The US President also voiced support for reimposing sanctions on countries purchasing Russian oil and natural gas. Analysts believe that such measures could further tighten global energy supplies and add upward pressure on oil prices.
The conflict has expanded beyond the United States and Iran. Yemen's Houthi rebels have accused Saudi Arabia of carrying out airstrikes on Sanaa airport. In response, the Houthis reportedly launched missiles and drones targeting Saudi Arabia's Abha airport. These developments have increased concerns that the conflict could spread further across the Middle East.
The growing uncertainty in West Asia has also affected financial markets around the world. Investors are becoming increasingly cautious because rising oil prices can increase inflation, raise transportation and manufacturing costs, and slow economic growth.
The Indian stock market opened lower as investors reacted to the latest developments in the Middle East. Similar volatility has been seen in several international markets as traders assess the possible impact of continued military action on global trade and energy supplies.
For countries like India, which import a large portion of their crude oil requirements, sustained increases in international oil prices could lead to higher fuel costs and put additional pressure on inflation. Rising crude prices also affect industries such as aviation, transportation and manufacturing, which depend heavily on fuel.
Despite the recent surge, experts say the future direction of crude oil prices will depend on geopolitical developments. If tensions ease and supply routes remain open, prices could stabilise. However, any further attacks on oil infrastructure, shipping routes or energy facilities could push crude prices even higher.
For now, global markets remain focused on the evolving situation in the Middle East. As military tensions continue and uncertainty over oil supplies persists, crude oil is expected to remain volatile in the coming weeks, with investors closely monitoring every new development in the region.
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