Crude oil prices recorded a third consecutive day of gains as the Iran–Israel conflict intensified and the Iranian government decided to close the Strait of Hormuz, raising concerns about global supply disruptions.
According to a Reuters report, Brent crude futures rose by 1.4 percent, or $1.10, to reach $78.83 per barrel on Tuesday. On Monday, the price had already climbed to $82.37 per barrel, the highest level since January 2025. Although prices softened slightly afterward, Brent crude closed the day with a gain of 6.7 percent.
Experts said the upward trend has continued over the past three days, with the Iran–Israel conflict identified as the primary factor supporting the increase. They stated that if the conflict and tensions persist, crude oil prices may continue to rise.
The Strait of Hormuz is one of the world’s key oil transportation routes, accounting for approximately 20 percent of global oil supply. The Iranian government’s decision to close the strait could disrupt global oil supplies.
Experts said that if the disruption continues for an extended period, crude oil prices could rise to between $100 and $115 per barrel. In a more severe scenario, prices could reach between $120 and $140 per barrel.
Oil-producing countries Saudi Arabia and the United Arab Emirates have additional production capacity of 4 to 5 million barrels per day. However, a significant portion of this additional supply depends on the Strait of Hormuz, leaving the risk of supply disruption in place.
India meets around 85 percent of its crude oil requirement through imports. As a result, increases in international oil prices have a direct impact on the country’s import bill.
Higher crude oil prices could lead to increases in petrol, diesel and cooking gas prices. This could raise the cost of daily goods and contribute to higher inflation for consumers.
Experts said that if oil prices remain elevated for an extended period, it could place pressure on the country’s economic conditions and consumer spending.
The continued rise in oil prices and ongoing geopolitical tensions could create concerns for investors. Supply disruptions and rising prices in the international market may also affect stock markets and energy-related shares.
Investors may review their portfolios cautiously during this period and, if necessary, adjust their positions in energy and crude oil-related investments.
