Global oil prices climbed sharply on Thursday, nearing the crucial $100 per barrel mark, after renewed tensions in the Middle East triggered fresh concerns over supply disruptions. Benchmark crude futures, including Brent Crude and WTI Crude, rose more than 3%, trading above $97 per barrel.
The spike follows fresh military strikes by Israel in Lebanon, raising doubts over the stability of the recently announced ceasefire involving Iran and the United States. Markets, which had briefly stabilised on hopes of de-escalation, quickly reversed course as geopolitical risks resurfaced.
A key factor driving the rally is the disruption around the Strait of Hormuz, through which nearly 20% of the world’s oil supply passes. Any threat to this critical route tightens supply expectations, pushing prices higher even with limited interruptions.
The volatility in oil markets also spilled over into Indian equities. The BSE Sensex dropped 725 points, while the Nifty 50 fell 175 points, reflecting investor concerns over rising energy costs and global instability.
The sharp rebound comes just a day after crude prices had declined on optimism surrounding the ceasefire announcement. However, the swift turnaround highlights how sensitive markets remain to geopolitical developments.
With tensions showing no clear signs of easing, analysts expect oil prices to remain volatile in the near term. Continued disruptions could push crude beyond the $100 mark, while any diplomatic breakthrough may bring temporary relief.