Crude Oil Prices Rise as Brent Crosses $99 Following Strait of Hormuz Tanker Attacks

Crude oil prices moved higher during Friday morning trading following reports of fresh tanker attacks in the Strait of Hormuz. The upward movement pushed Brent crude past $99 a barrel, while West Texas Intermediate (WTI) traded closer to the $92 mark.

At 10:04 am on Friday, January Brent oil futures were recorded at $99.83, reflecting an increase of 1.57 per cent. Meanwhile, December crude oil futures on WTI stood at $91.73, up by 1.34 per cent.

Domestic markets mirrored the global trend during the initial hour of trading on Friday. November crude oil futures on the Multi Commodity Exchange (MCX) traded at ₹8,690, compared to their previous close of ₹8,560, marking a 1.52 per cent gain. December futures on the exchange traded at ₹8,595, up 1.68 per cent from the previous close of ₹8,453.

The market movement comes in the wake of security incidents reported by the United Kingdom Maritime Trade Operations (UKMTO), which noted tanker attacks in the Gulf and the Strait of Hormuz beginning Sunday. Additionally, a report citing Iran’s Islamic Revolutionary Guard Corps (IRGC) stated that two oil tankers and a tugboat caught fire in separate incidents in the Strait of Hormuz after allegedly attempting to navigate unauthorised routes.

Geopolitical pressures also intensified as Saudi Arabia issued warnings regarding potential dangers near its oil export hub at Yanbu amid ongoing attacks from the Houthis. In diplomatic efforts to manage the situation, Iran’s Foreign Minister Abbas Araqchi held separate phone calls with his counterparts in Saudi Arabia and Qatar aimed at regional stabilization.

In other commodity trading on domestic exchanges, November menthaoil futures on the MCX traded at ₹1,357.90 during Friday's initial hour, up 0.47 per cent from the previous close of ₹1,351.50. On the National Commodities and Derivatives Exchange (NCDEX), December dhaniya contracts rose 1.10 per cent to trade at ₹16,390 against a previous close of ₹16,212. Conversely, November guarseed futures on the NCDEX saw a marginal decline of 0.32 per cent, trading at ₹8,145 compared to the previous close of ₹8,171.

"The recent spike in crude oil prices driven by geopolitical disruptions in the Strait of Hormuz highlights the immediate vulnerability of global energy supply chains. For businesses and startups operating in energy-intensive sectors, such sudden commodity price fluctuations directly impact operational costs and supply chain logistics. Companies must maintain strategic financial buffers and continuously evaluate their input cost management to navigate these macroeconomic uncertainties effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes