US-Israel-Iran War: As a result of the ongoing conflict, oil prices resumed their upward trajectory on TuesdayUS-Israel-Iran War: As the conflict across the West Asia region continues to rage on in its third week, Brent crude futures have crossed $103 per barrel with no signs of improvement in the blockade situation at the Strait of Hormuz. US WTI Crude, on the other hand, are nearing $96 per barrel.
In another development, Russian Urals crude delivered to India hit a record high price, while discounts reached a four-month low and the Hormuz blockade entered its 18th day. The discount on Urals crude for India stands at 0.8-0.9 dollars per barrel, the lowest since November, compared to typical levels of 2.5-3 dollars.
Previously, US President Donald Trump said that America is "shocked" after Iran began striking Gulf countries, including the UAE, Qatar, Saudi Arabia, and Kuwait.
He also said that the US has extinguished most of Iran's missiles and drones and two layers of its leadership. Even though Trump claims that the US has been fairly successful in the conflict so far, Tehran has a warning for Washington DC.
Meanwhile, tensions intensified around the strategically critical Strait of Hormuz as various US allies, including the UK and China, declined to deploy warships to escort oil tankers from Hormuz. As a result, oil prices resumed their upward trajectory on Tuesday
Germany has also ruled out sending its warships through the waterway, citing the absence of a mandate from the UN, NATO or the European Union (EU). Chancellor Friedrich Merz said that Germany was not consulted before the US and Israel decided to pound Iran to a pulp.
The strategically critical waterway continues to remain closed as the war continues to spiral, impacting nearly 20 per cent of global oil and liquefied natural gas (LNG) shipments that pass through it. Iran has reportedly deployed drones and naval mines in the area, leading to prolonged disruption, rising energy prices and inflationary pressure on global markets.
Also Read: Gulf tensions: Did Saudi Crown Prince push Trump to keep hitting Iran? Here's what we know
Middle East conflict: Here are the latest updates on BusinessToday.In
Brent nears $103 per barrel, WTI eyes $96 a barrel
The UAE energy sector faced further turmoil on Tuesday as two separate attacks disrupted regional operations. A drone strike forced a continued shutdown at the Shah gas field—a massive sour gas facility southwest of Abu Dhabi—while a secondary strike ignited a blaze within the Fujairah Oil Industry Zone.
The situation continues to strain the UAE's energy infrastructure, as the Shah field represents one of the most significant sour gas deposits globally.
Reports surfaced on Tuesday of renewed explosions across multiple sectors of Tehran. According to Al Jazeera, which cited sources from VOA’s Persian-language service, these blasts targeted the Andarzgoo district as well as an IRGC paramilitary facility located in Kamraniyeh.
Simultaneously, Reuters reported that a separate explosion was heard in Doha, the capital of Qatar.
Domestic benchmark indices Sensex and Nifty opened on a flat note on Tuesday, though sentiment remains cautious amid the prolonged West Asia conflict.
At 9:17 am, the BSE Sensex declined 80.12 points, or 0.11%, to 75,422.73. The NSE Nifty slipped 21.80 points, or 0.09%, to 23,387.
The Ministry of Petroleum and Natural Gas' Parliamentary Standing Committee is set to hold a meeting today at 3 pm. Discussions will focus on the challenges faced by the indigenous petroleum sector due to the global developments, particularly the Middle East conflict.
There will also be a question-and-answer session regarding LPG supply concerns across the country. Petroleum Ministry officials will provide a briefing, India Today reported.
(With inputs from Himanshu Mishra)
US intelligence agencies warned Donald Trump that attacking Iran could lead to retaliation against US allies in the Gulf. Pre-war intelligence flagged strikes on Gulf states as a possible outcome, as per US officials and sources familiar with the reports.
He was also warned before the strikes that Tehran could attempt to shut the Strait of Hormuz if the war broke out. The strategically crucial waterway carries around 20 per cent of the world's oil supply.
Oil prices rose more than 2% in early trade on Tuesday, reversing some of the previous session's losses, on worries about supply with the Strait of Hormuz mostly shut and US allies rebuffing calls to send warships to help tankers move through the vital waterway.
Brent futures jumped $2.48, or 2.5%, to $102.69 a barrel by 0058 GMT, while US West Texas Intermediate crude gained $2.42, or 2.6%, to $95.92.
In the previous session, Brent futures settled 2.8% lower while US West Texas Intermediate (WTI) crude slid 5.3% after some vessels sailed through the critical waterway.
The Strait of Hormuz - a chokepoint for about 20% of the world's oil and liquefied natural gas trade - has been largely disrupted by the US-Israeli war on Iran, now in its third week, raising concerns about supply shortages, higher energy costs and rising inflation.
Several US allies rebuffed Donald Trump's call on Monday to send warships to escort shipping through the Strait of Hormuz, drawing criticism from the US president, who accused Western partners of ingratitude after decades of support.
"The risks remain stark: It only takes one Iranian militia to fire a missile or plant a mine on a passing tanker to reignite the entire situation," IG market analyst Tony Sycamore said in a note.
-- Reuters
Amidst the sharpening conflict between Israel and Iran, President Donald Trump has downplayed the risk of nuclear warfare while emphasizing the durability of the American-Israeli alliance.
Addressing the press at the White House, President Trump rejected the notion that Israel might deploy its nuclear arsenal in the current war. He characterized such a move as out of the question, stating that Israel "would never do that." His comments aim to soothe international anxiety regarding a catastrophic expansion of the regional struggle.
Trump described the US and Israeli militaries as "very well coordinated" despite the ongoing intensity of the fighting. He reaffirmed that the bond between Washington and Tel Aviv remains robust.
While highlighting cooperation, the President did concede that the specific strategic objectives of each government may not perfectly align.
Iran's Deputy Foreign Minister Saeed Khatibzadeh has warned the US against deploying its troops inside the Iranian territory, saying that the idea of foreign boots in the country would be both reckless and illegal. Khatibzadeh further said that such a move would drag the American forces into a "quagmire". He stressed that Tehran was focused on defending its sovereignty and would strongly respond to any attempt at direct military intervention.
