Crude Oil Prices Surge Past $121 Per Barrel Amid Ongoing US-Iran Diplomatic Uncertainty

Global Oil Prices Climb Amid Concerns Over Middle East Supply

Oil prices continued to rise on Thursday, fueled by concerns that supply from the crucial Middle East producing region could remain constrained for longer, as negotiations to end the US-Israel conflict with Iran have stalled. Brent crude futures for June climbed to $122 a barrel, following a 6.1% jump in the previous session. The June contract, which marked its ninth straight day of gains, expires on Thursday, while the more actively traded July contract rose 94 cents, or 0.85%, to $111.38 after advancing 5.8% in the prior session.

US West Texas Intermediate (WTI) crude futures for June gained 63 cents, or 0.59%, to $107.51 a barrel, after surging 7% in the previous session and rising in eight of the last nine trading sessions. Back home, crude oil prices on Multi Commodity Exchange (MCX) also witnessed a similar upward movement, crossing ₹10,000 per barrel mark. MCX crude oil prices surged as much as 3% to ₹10,410 a barrel.

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The rise in oil prices can be attributed to concerns over prolonged disruptions to oil supplies. US President Donald Trump held talks with oil companies on Wednesday to explore ways to cushion the impact of a potential months-long US blockade of Iran’s ports. The discussions came amid a stalemate in efforts to resolve the conflict, which has resulted in thousands of deaths and triggered one of the largest energy disruptions globally.

The Strait of Hormuz, a critical route for Middle Eastern energy exports, has been largely restricted by Tehran since US and Israeli airstrikes on Iran began on February 28. More recently, the US has moved to blockade Iranian ships. The OPEC+ alliance, which comprises OPEC members and allied producers, is expected to approve a modest increase of about 188,000 barrels per day in output quotas at its upcoming meeting on Sunday. However, analysts believe that the UAE's planned exit from OPEC, effective May 1, could weaken the group's influence over oil prices.

Crude oil prices outlook remains bullish, underpinned by trendline support and ongoing supply disruption concerns in the Strait of Hormuz. According to Ponmudi R, CEO of Enrich Money, MCX Crude Oil is trading above the ₹9,400 level, pulling back slightly from yesterday's high near ₹9,600. A sustained break above ₹9,600 could open the path toward ₹9,750–₹10,000. On the downside, ₹9,200 acts as immediate support, with ₹9,000–₹8,800 as stronger floors should momentum fade.

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