Crude Oil Futures Rise Following US Strikes on Iranian Targets

Crude oil futures traded higher on Wednesday morning following a series of fresh US military strikes against Iranian targets.

At 9:31 am on Wednesday, December Brent oil futures reached $95.44, marking an increase of 4.23 per cent. October crude oil futures on West Texas Intermediate (WTI) traded at $90.68, up by 0.51 per cent. On the Multi Commodity Exchange (MCX) during the initial hours of trading, September crude oil futures were recorded at ₹8,610 compared to the previous close of ₹8,536, representing a 0.87 per cent rise, while October futures traded at ₹8,379 against the previous close of ₹8,335, up by 0.53 per cent.

According to a statement from the US Central Command, forces completed a wave of strikes against Iranian military targets on September 1. The operations targeted Islamic Revolutionary Guard Corps (IRGC) assets, including air defence sites, radar systems, maritime facilities, mine-laying capabilities, and communications infrastructure. The US stated that these actions followed recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members.

US President Donald Trump noted on social media that the US position has strengthened with control of the Strait of Hormuz, while commenting on Iran's economic conditions.

In their Commodities Feed for Wednesday, ING Think Head of Commodities Strategy Warren Patterson and Commodities Strategist Ewa Manthey stated that Brent pushed back above $95 a barrel to reach its highest level in over a month as Persian Gulf tensions escalated. Following weekend strikes, Iran reportedly hit two oil tankers in the region on Tuesday, prompting additional overnight US strikes and adding a geopolitical risk premium to the market.

The analysts observed that developments have brought regional oil supply risks back into focus. While oil has continued to flow through the Strait of Hormuz, rising tensions place crossings at risk. The US energy secretary reported that 17 million barrels of oil flowed through the strait on Monday, representing the highest volume since the conflict began. When factoring in bypass volumes, Persian Gulf oil flows appear to exceed pre-war levels, though these figures carry uncertainty as ship trackers estimate more modest volumes.

Alongside crude, other commodities also saw movement during early trading on Wednesday. September natural gas futures on the MCX traded at ₹280.50, up 1.19 per cent from the previous close of ₹277.20. On the National Commodities and Derivatives Exchange (NCDEX), October turmeric farmer-polished contracts traded at ₹20,160, an increase of 0.71 per cent, while September jeera futures traded at ₹21,110, up 0.36 per cent from the previous close.

"Geopolitical tensions in the Persian Gulf continue to introduce immediate volatility into global energy markets, directly impacting crude oil futures and domestic commodity prices. For businesses and startups operating in energy-dependent sectors, such fluctuations underline the importance of maintaining robust supply chain risk management and cost contingency plans during periods of macroeconomic uncertainty." — Dr. Shishir Gupta, Founder & CEO, StartupLanes