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The escalating conflict between Israel and Iran in the Middle East has sent shockwaves through the global energy market, driving up crude oil prices. The tensions, fueled by recent retaliatory missile strikes by Iran against Israel, have sparked fears of a wider regional conflict, leading investors to seek safe havens in commodities like oil.
The iCOMDEX Crude Oil index of the Multi Commodity Exchange (MCX) reflects the heightened anxiety. On Thursday, October 10, 2024, the index surged to ₹ 7,749.35 a barrel, marking a 1.32% or ₹ 101.11 gain. This significant increase follows a period of relatively low prices, with the index reaching a near two-week low of ₹ 7,294.35 on September 26, 2024.
The impact of the Israel-Iran crisis extends beyond the Indian market. International prices for Iran Light and Iran Heavy crude experienced a substantial rise, exceeding 1.5%. Brent Crude, a benchmark for oil extracted from the North Sea, also saw an upward trajectory, rising 1.31% or $0.97 to $74.87 a barrel. Similarly, WTI Crude Oil, a benchmark for US oil production, increased by 1.48% or $1.04 to $71.14 a barrel, according to Bloomberg data.
The continued escalation of the conflict, coupled with pronouncements of retribution from both Israel and the US, has heightened concerns among market analysts. The potential for a protracted and intensified regional war casts a shadow over the global energy outlook, raising the specter of supply disruptions and further price volatility. As the situation unfolds, oil prices are likely to remain sensitive to developments in the Middle East, leaving traders and consumers alike on edge.
Source: Israel-Iran crisis: Escalating conflicts cause global oil prices to shoot up