US-Iran Tensions Trigger Oil Price Rebound as Supply Risks Remain Elevated
Crude Oil Prices Surge Amid Supply Concerns
Brent crude futures rose to $104 per barrel on March 24, while the US crude benchmark West Texas Intermediate advanced almost 4%. This rebound comes after a sharp decline of over 10% in crude prices on Monday, following Donald Trump's statement on a potential delay in planned attacks on Iran's power plants.
Supply concerns remain elevated, with Iran denying discussions with the United States to end the Gulf conflict, contradicting Trump's earlier statement. Tensions have also been fueled by Israel's military offensive and reports that US allies in the Persian Gulf are moving closer to joining the conflict.
MCX crude oil prices surged 3.57% to ₹8,645 per barrel on the Multi Commodity Exchange (MCX). Brent crude has surged more than 60% this month, driven by fears of a global energy crisis and fuel inflation. Refined products such as diesel and jet fuel have risen even more sharply than crude, adding pressure on consumers and governments alike.
Crude oil price near-term outlook: According to Macquarie, Brent crude oil prices could reach $150 per barrel if the Strait of Hormuz remains effectively shut until the end of April. Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, believes that Brent crude is likely to remain range-bound between $95 and $110 on the spot market.
Investor Takeaway
Investors should be cautious of potential supply risks and their impact on oil prices.
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