New Delhi, June 2: Brent crude surged past the $120 per barrel mark today, underscoring the impact of escalating tensions in West Asia on global energy markets. The sharp rise has rattled traders and raised concerns over supply disruptions through the Strait of Hormuz, a vital route for nearly one‑fifth of the world’s oil shipments.
WTI crude also climbed above $100 per barrel, reflecting the broader volatility across international benchmarks. Analysts said the surge was driven by fears of prolonged instability, with military strikes and restricted shipping adding to market uncertainty.
For India, which depends on imports for nearly 90 percent of its crude needs, the spike poses risks of higher inflation, a heavier import bill, and pressure on the rupee. Experts warned that sustained high prices could widen the current account deficit and strain government finances through increased subsidy burdens.
Authorities stressed that diversification of energy sources and alternative supply routes will be vital to cushion the impact of prolonged instability in West Asia. Policymakers and market participants continue to monitor the situation closely as volatility persists.
