Crude Oil Futures Hit Record High Of ₹10,888 Per Barrel As US-Iran Stand-Off Fuels Supply Fears

Crude oil prices rose nearly 3% to hit a record high of ₹10,888 per barrel in futures trade on Tuesday, tracking strong global cues as tensions between the US and Iran intensified ahead of President Donald Trump's deadline for reopening the Strait of Hormuz.

On the Multi Commodity Exchange (MCX), crude oil for April delivery increased by ₹300, or 2.83%, to hit a lifetime high of ₹10,888 per barrel.

Similarly, the May contract also advanced ₹170, or 1.82%, to touch a fresh record high of ₹9,485 per barrel on the MCX.

"Crude oil prices remained firm as geopolitical tensions intensified ahead of US President Donald Trump's deadline for Iran, keeping markets highly sensitive to every development surrounding the Strait of Hormuz," Kaveri More, Commodity Analyst at Choice Broking, said.

Threats of potential strikes on Iranian infrastructure and warnings from Tehran of retaliation against Gulf energy assets have heightened fears of supply disruptions, overshadowing diplomatic efforts toward a ceasefire, she added.

"With the Strait of Hormuz being a critical route for global oil flows, uncertainty continues to fuel volatility, while rising inflation expectations and a stronger US dollar index above 100 reflect broader macroeconomic concerns tied closely to energy prices," More said.

In the international market, West Texas Intermediate (WTI) crude futures for the May delivery gained $4.14, or 3.7% to $116.55 per barrel, while Brent oil for the June contract rose 1.5% to $111.40 per barrel in New York.

"WTI crude futures climbed toward $115 per barrel, trading near their highest close since June 2022 as President Trump's deadline for Iran to strike a deal or face intensified attacks approaches," Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.

Meanwhile, Trump on Monday reiterated threats to strike Iranian power plants and other civilian infrastructure.

Adding to tensions, Israel said it struck a major petrochemical complex in Iran, raising fears that the conflict could broaden and further disrupt energy production in the region.

Investors are now closely monitoring developments in West Asia, with volatility expected to remain high as geopolitical risks continue to dominate energy markets.