Crude Oil Prices Rise Following US Threats Against Iran and Strait of Hormuz Incident

Crude oil futures rose on Tuesday as US President Donald Trump threatened further strikes against Iran amid renewed tensions. The market reaction followed a reported tanker incident near the Strait of Hormuz, prompting heightened caution in international maritime and energy markets.

During Tuesday morning trading, December Brent oil futures reached $91.29, marking an increase of 3.30 per cent. October crude oil futures on West Texas Intermediate (WTI) traded at $86.79, up by 1.20 per cent. On the Multi Commodity Exchange (MCX), September crude oil futures traded at ₹8237 during the initial hour of trading against the previous close of ₹8149, representing a 1.08 per cent increase. October futures on the exchange traded at ₹8080 compared to the previous close of ₹8019, up by 0.76 per cent.

Speaking to reporters in the Oval Office, President Trump stated that the renewed strikes on Iran did not signal a return to full-scale war, adding, “That doesn’t mean we won’t smack them. We’ll see what happens.” In comments to Fox News, he noted that the US is going to hit Iran hard and that there will be a response. Additionally, in a post on Truth Social, Trump described Iran as a failed nation citing inflation rates at 300 per cent and issues concerning its military and leadership.

In maritime developments, the United Kingdom Maritime Trade Operations (UKMTO) Centre reported receiving an incident notification 17 nautical miles east of Khasab, Oman. A tanker reported being struck by three unknown projectiles while completing an outbound transit of the Strait of Hormuz. Authorities noted that no casualties or environmental impact had been reported, and investigations remain ongoing while vessels are advised to transit with caution.

Concurrently, US Central Command disputed claims made by Iran’s Islamic Revolutionary Guard Corps (IRGC) that a supertanker passing through the southern route of the Strait of Hormuz struck two mines and stopped completely. In a post on X, US Central Command termed the claim false, stating that no ships have hit mines in the Strait of Hormuz and characterizing the statement as an IRGC attempt to intimidate regional commercial shipping through disinformation.

Other commodity contracts also saw movement during Tuesday's initial trading hours. On the MCX, September zinc futures traded at ₹421.80 against a previous close of ₹417.40, up by 1.05 per cent. On the National Commodities and Derivatives Exchange (NCDEX), September cottonseed oilcake contracts traded at ₹3070 compared to the previous close of ₹3004, representing a 2.20 per cent increase, while September jeera futures traded at ₹21245 against the previous close of ₹21185, up by 0.28 per cent.

"Geopolitical tensions in key trade corridors like the Strait of Hormuz immediately impact global energy markets, leading to noticeable volatility in crude oil futures and domestic commodity exchanges. For businesses and entrepreneurs, fluctuations in fuel and raw material prices require careful cost management and agile supply chain planning to mitigate unexpected operational expenses during periods of international uncertainty." — Dr. Shishir Gupta, Founder & CEO, StartupLanes