Brent Crude Price Surge: Due to increasing tension in West Asia, there is a rise in the prices of crude oil. Crude oil prices rose for the third consecutive day on Tuesday due to the ongoing conflict and the Iranian government’s decision to close the Strait of Hormuz.

Due to the closure of the Strait of Hormuz, 20 percent of the global supply will be disrupted. Due to which prices can skyrocket. Let us know, how much the prices of crude oil have increased today…

Crude oil prices rise for the third consecutive time

According to a Reuters report, on Tuesday, Brent crude futures rose by 1.4 percent or $ 1.10 to reach $ 78.83 per barrel. On its last trading day on Monday, crude futures had jumped to $ 82.37. Which is the highest level after January 2025. However, after this there was some softening in prices.

At the end of the day it closed with a gain of 6.7 percent. This rise in crude oil prices has been continuing for the last 3 days. Crude oil prices are continuously getting support due to the Iran-Israel war. According to market experts, the longer this conflict continues, the greater will be the possibility of a rise in crude oil prices.

Crude oil may skyrocket if supply is disrupted

Considering the current stressful situation, experts estimate that the price of Brent crude may go up to $100 to $115 per barrel. If there is blockage on major sea routes, prices may reach the level of 120 to 140 dollars per barrel.

Experts believe that this rise in prices is going to depend on how long the environment of uncertainty can persist in West Asia. Saudi Arabia and the United Arab Emirates, major members of the group of oil producing countries, have additional production capacity of about 4 to 5 million barrels per day. But a large part of this additional supply still depends on the Strait of Hormuz. The apprehension created due to this cannot be denied.

Inflation may increase

India fulfills a large part of its crude oil needs through imports. In such a situation, the increase in prices in the international market has a direct impact on the country’s import bill. Due to oil becoming expensive, the cost of petrol, diesel and cooking gas may increase.

Due to which everyday things can become expensive. Which will have a direct impact on the pockets of common people and people may have to face inflation.

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Crude Oil Price Today: America and Israel jointly took military action on several targets in Iran on 28 February. According to the information, Iran’s Supreme Leader Ayatollah Ali Khamenei has died in this attack. After which the situation in the entire West Asia has become more sensitive.

Uncertainty has increased in this area which was already facing tension. In such an environment, activities in the crude oil market have intensified and investors’ eyes are now fixed on oil prices. This tension is going to have a direct impact on oil importing countries like India…

Iran closed Hormuz Strait

Amidst this ongoing dispute between the two countries, the Iranian government has announced the closure of the Strait of Hormuz. Due to this decision of Iran, it is feared that the prices of crude oil may touch the sky.

Talking about the reason behind this, 20 percent of the world’s crude oil is supplied through this route. This means that due to closure of the road, there will be a reduction in the supply of crude oil, due to which the prices are expected to increase.

The price of crude oil may increase further due to supply disruption

Amidst the fluctuations in the oil market, prices have gained momentum recently. According to news agency Bloomberg, the price of West Texas Intermediate, a retail trading product of IG Group, at one time reached $ 75.33 per barrel.

Which was about 12 percent more than Friday’s closing level. According to other media reports, crude oil prices may go up to $76 to $81 per barrel.

Importance of Homuz Strait

Homuz Strait is located between Iran and Oman. It connects the Persian Gulf to the Gulf of Oman. It is counted among the important energy chokepoints of the world. Qatar, which is the world’s largest LPG exporter, sends almost its entire LPG supply through this route.

This is the reason why there is a possibility of fluctuations in the oil market due to the closure of Homuz Strait.

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