Crude Oil Futures Climb For 6th Session As US-Iran Tensions Revive Supply Disruption Fears

Rising for the sixth consecutive session, crude oil futures jumped nearly 1% to ₹8,592 per barrel on Wednesday amid renewed US-Iran hostilities, stoking fears of global energy supply disruptions.

On the Multi Commodity Exchange, crude oil futures for the September delivery rose by ₹56, or 0.66%, to ₹8,592 per barrel.

The October contract also gained ₹56, or 0.67%, to ₹8,391 per barrel.

"Crude oil's rally accelerated on Wednesday after Washington and Tehran resumed direct hostilities following a period of relative calm," said Kaynat Chainwala, AVP Commodity Research at Kotak Securities.

The flare-up came as the US Central Command said it has completed a fresh wave of strikes against Iranian military targets, while the White House indicated that further military action remained possible if Tehran continued retaliatory attacks.

Meanwhile, Iran expanded its response by striking Jordan, Bahrain and Kuwait, all of which host US military infrastructure, raising concerns that the conflict could draw in other Gulf states and threaten tanker traffic and regional oil production, she added.

In global markets, Brent oil futures for November delivery rose for the third straight session, jumping by $2.36, or 2.5%, to $97.01 per barrel on the Intercontinental Exchange (ICE).

The West Texas Intermediate (WTI) for the October contract rose for the third straight session, trading 0.57% higher to $90.73 per ounce on the New York Mercantile Exchange (NYMEX).

"Brent oil surged towards $97 and WTI approached $92 per barrel in the global markets after a second consecutive day of US strikes on Iranian targets," Chainwala said.

She noted that with no signs of de-escalation, crude retains an upward bias, although stretched positioning leaves prices vulnerable to a sharp reversal following any credible ceasefire.

According to analysts, the prospect of a wider confrontation has thus put geopolitical risk firmly back in the driving seat for crude, with market participants weighing the threat to supplies against the possibility of a sudden reversal if diplomatic efforts produce a ceasefire.