Crude oil futures jump 3% as US-Iran supply fears rise

Escalating geopolitical risks and disrupted shipping routes fuel volatility, boosting crude benchmarks while keeping investors cautious over supply uncertainties

Crude oil futures surged more than 3% on Friday as escalating tensions between the US and Iran heightened fears of global supply disruptions, pushing benchmark prices sharply higher in domestic and international markets.

 On the Multi Commodity Exchange (MCX), crude oil contracts for May delivery climbed ₹349, or 3.59%, to ₹10,073 per barrel in a turnover of 9,898 lots. 

  The July contract also advanced ₹344, or 3.68%, to ₹9,694 per barrel with 9,315 lots traded. 

Analysts said growing concerns over tightening supplies through the Strait of Hormuz, a key global oil transit route, fuelled bullish sentiment across energy markets. 

  Reports of vessel attacks, seizures and restricted tanker movement near Iranian waters added to fears of prolonged disruptions in crude flows. 

Globally, Brent crude for July delivery surged US$ 3.54, or 3.35%, to US$109.26 per barrel, while West Texas Intermediate (WTI) crude for June delivery jumped nearly 4% to around US$105 per barrel in New York trade.

 Kaynat Chainwala, AVP Commodity Research at Kotak Securities, said crude prices remained on track for weekly gains of over 6% amid deepening geopolitical tensions and concerns over energy supply security.

 The International Energy Agency (IEA) warned that oil markets could remain undersupplied through October even if geopolitical tensions ease, citing falling inventories and disrupted shipping activity. 

 Meanwhile, the OPEC lowered its 2026 demand growth forecast due to rising prices and geopolitical uncertainties.

 Market participants also monitored talks between US President Donald Trump and Chinese President Xi Jinping, which ended without major progress on Iran or global energy security issues.

 Analysts said crude oil prices are expected to remain volatile in the near term as developments around the Strait of Hormuz continue to influence global energy markets.