Global crude oil prices hit four-week high amid escalating US-Iran conflict

On Tuesday, global crude oil prices rose roughly 3%, reaching their highest point in four weeks, after the United States re‑imposed a naval blockade on Iran and renewed skirmishes near the Strait of Hormuz sparked worries about possible supply interruptions.

Brent, the international benchmark, jumped as much as 2.82% (about $2.35) to trade above $85 a barrel, while WTI in the United States climbed nearly 3% ($2.28) to $80.42 per barrel.

In India’s domestic market, MCX crude oil futures surged 4.51% (Rs 332) to Rs 7,692, marking an intraday peak around 11:08 am.

This advance came after Brent had already jumped close to 10% in the prior session—the largest single‑day increase since May 2020—as mounting geopolitical tensions revived concerns over the safety of oil flows from the Persian Gulf.

Analysts warned that crude prices are likely to stay volatile while geopolitical developments continue to sway market sentiment.

“Crude oil prices have touched a four‑week high amid the deepening Middle East crisis. The United States carried out a third consecutive night of strikes on Iran after President Donald Trump announced a multi‑day barrage of attacks and a fresh blockade on Iranian trade via the Strait of Hormuz,” they noted.

They also pointed out that the MCX July crude futures contract opened nearly 4% higher at 7,654 and is now moving toward its immediate resistance level of 7,729, which aligns with the 200‑day exponential moving average on the four‑hour chart.

“A decisive break above 7,729 could fuel further gains, with the next obstacle around 8,000 during the session. On the flip side, important support zones lie between 7,400 and 7,260,” they added.

President Donald Trump said Washington had restored its blockade of Iranian shipping and warned that nations enjoying U.S. protection for commercial vessels transiting the Strait of Hormuz should be prepared to reimburse the United States for the operation.

According to reports, Iran escalated its response by deploying drones aimed at U.S. assets in Kuwait and launching cruise missiles at what it labeled a hostile ship.

Nevertheless, Tehran declared that its accord with Washington had entered a crisis stage and said it would no longer abide by the agreement as long as the United States continued to breach its commitments.