Crude Oil Prices Rebound 2% to $103 Amid Supply Concerns and Escalating US-Iran Tensions

Crude Oil Prices Climb Amid US-Iran Conflict

Key Figures:

• Brent crude futures: +$2.48 (2.5%) to $102.69 per barrel
• US West Texas Intermediate (WTI) crude: +$2.42 (2.6%) to $95.92 per barrel
• MCX crude oil prices: +2.29% to ₹8,872 per barrel

Market Overview

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Crude oil prices rebounded in early trading on Tuesday, March 17, as concerns over supply disruptions persisted due to the ongoing US-Iran conflict. The Strait of Hormuz, a critical chokepoint handling 20% of global oil and liquefied natural gas flows, remains largely shut. This has led to US West Texas Intermediate (WTI) crude advancing 2.6% to $95.92 per barrel, while Brent crude futures rose 2.5% to $102.69 per barrel.

Supply Disruptions and Global Impact

The ongoing conflict has disrupted production in the region, with the United Arab Emirates cutting output by more than half. Iran has urged India to release three tankers seized in February as part of negotiations aimed at ensuring safe passage for Indian-flagged or India-bound ships through the Gulf. The near-shutdown of the route has also led to a request by the International Energy Agency for member nations to release additional oil supplies.

Price Outlook and Projections

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Some banks have revised their longer-term price forecasts upward, reflecting expectations of a potentially extended supply disruption. Bank of America has raised its 2026 Brent crude forecast to $77.50 per barrel, while Standard Chartered increased its projection to $85.50 per barrel. Kotak Securities expects crude oil prices to remain volatile and range-bound at elevated levels in the near term.