New Delhi, April 7 Crude oil prices rose by nearly 3 per cent to hit a record high of Rs 10,888 per barrel in futures trading on Tuesday, driven by strong global cues as tensions between the US and Iran intensified ahead of President Donald Trump's deadline for reopening the Strait of Hormuz.
On the Multi Commodity Exchange (MCX), crude oil for April delivery increased by Rs 300, or 2.83 per cent, to hit a lifetime high of Rs 10,888 per barrel.
Similarly, the May contract also advanced by Rs 170, or 1.82 per cent, to touch a fresh record high of Rs 9,485 per barrel on the MCX.
"Crude oil prices remained firm as geopolitical tensions intensified ahead of US President Donald Trump's deadline for Iran, keeping markets highly sensitive to every development surrounding the Strait of Hormuz," said Kaveri More, Commodity Analyst at Choice Broking.
Threats of potential strikes on Iranian infrastructure and warnings from Tehran of retaliation against Gulf energy assets have heightened fears of supply disruptions, overshadowing diplomatic efforts toward a ceasefire, she added.
"With the Strait of Hormuz being a critical route for global oil flows, uncertainty continues to fuel volatility, while rising inflation expectations and a stronger US dollar index above 100 reflect broader macroeconomic concerns closely tied to energy prices," More said.
In the international market, West Texas Intermediate (WTI) crude futures for May delivery gained USD 4.14, or 3.7 per cent, to USD 116.55 per barrel, while Brent oil for the June contract rose by 1.5 per cent to USD 111.40 per barrel in New York.
"WTI crude futures climbed toward USD 115 per barrel, trading near their highest close since June 2022 as President Trump's deadline for Iran to strike a deal or face intensified attacks approaches," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
Meanwhile, Trump reiterated threats to strike Iranian power plants and other civilian infrastructure on Monday.
Adding to tensions, Israel said it struck a major petrochemical complex in Iran, raising fears that the conflict could broaden and further disrupt energy production in the region.
Investors are now closely monitoring developments in West Asia, with volatility expected to remain high as geopolitical risks continue to dominate energy markets.
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