New Delhi, April 3 (IANS). A sharp jump was seen in global crude oil prices on Friday. Concerns about supply have increased in the market after US President Donald Trump warned of a possible military attack on Iran in the next 2-3 weeks.
Brent crude futures rose 8 percent to $109.24 a barrel, while US West Texas Intermediate (WTI) futures were trading at $111.54 a barrel.
During the week, US WTI crude registered a rise of 11.94 per cent compared to last Friday, while Brent crude saw a decline of 3.14 per cent in the same period.
The ongoing conflict in West Asia has now entered its fifth week, affecting the supply of millions of barrels of oil every day from the global market. Due to this, energy prices have reached multi-year highs and countries dependent on supplies passing through the Strait of Hormuz are experiencing fuel shortages. About 20 percent of the world’s oil is supplied through this route.
In his speech this week, Donald Trump said that America could strike Iran ‘very hard’ in the coming weeks. However, he did not give any clear plan to reopen this important sea route and asked other countries to take the responsibility of smoothening it.
Analysts say that if tensions in West Asia increase further, there may remain pressure on crude oil prices, the Indian rupee and foreign investment in emerging markets.
According to experts, if the situation improves, crude oil prices may soften and the currency may become stable, but if tension increases, risk aversion will increase in the market.
Talking about precious metals, Comex Gold Futures were trading 0.48 per cent lower at $4,679.70 as investors look for safe investment options amid uncertainty.
Meanwhile, domestic commodity markets remained closed in the morning session due to Good Friday.
At the same time, due to rising tensions in West Asia and currency fluctuations, Indian stock markets closed down for the sixth consecutive week, where both the major benchmarks – Sensex and Nifty – remained weak.
–IANS
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