New Delhi, March 30 (IANS). A sharp rise in global crude oil prices was recorded on Monday amid increasing tensions in West Asia. The increase comes as Yemen’s Iran-backed Houthi group also joins the conflict.
International benchmark Brent crude futures rose as much as 3.66 percent to hit an intra-day high of $116.70 a barrel, close to a 52-week high. At the same time, American benchmark WTI crude also rose by more than 3 percent and crossed $ 103 per barrel.
This rise in oil prices comes after missile attacks on Israel by Houthi forces over the weekend. The Houthi group has warned that they will continue their attacks until the attacks on Iran and its allied groups stop. This has further increased the risks in the already stressed global energy market.
Brent crude prices have risen more than 50 percent in March, and are now back near highs reached early in the war, while diplomatic efforts continue.
Analysts say that at present crude oil has become the most important economic factor. There is now a possibility in the market that there may be disruption in supply for a long time. According to some global estimates, if tensions continue, prices could even reach $200 per barrel.
Experts said that this situation is a matter of concern for an import dependent country like India, because it can increase inflation, affect the profits of companies and also increase the current account deficit.
Its impact was also visible on the stock markets globally. Wall Street in the US closed with losses, where the S&P 500 index was down 1.67 percent and the Nasdaq was down nearly 2 percent.
Weakness was also seen in Asian markets. Japan’s Nikkei fell nearly 4 percent, while Hong Kong’s Hang Seng fell more than 1 percent and South Korea’s Kospi fell nearly 3 percent.
Its effect was also visible on the Indian stock market. Both Sensex and Nifty indices opened more than 1 per cent lower in early trade as the crisis in West Asia has now entered its fifth week and looks set to escalate further.
–IANS
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