Crude Oil Volatility Driven by Geopolitical Concerns

Crude Oil Prices Rebound on MCX Amid West Asia Tensions, Global Markets Stay Volatile​

Crude Oil Gains ₹204 in Futures Trade​

Crude oil prices rebounded in futures trading on Tuesday, rising by ₹204 to ₹8,549 per barrel, as geopolitical uncertainty in West Asia continued to influence market sentiment.

On the Multi Commodity Exchange (MCX), crude oil for April delivery climbed ₹204, or 2.44 percent, to ₹8,549 per barrel.

Sharp Decline in Previous Session​

The recovery follows a steep decline in the previous session, where crude prices plunged ₹1,186, or nearly 13 percent, hitting an intraday low of ₹8,072 per barrel. The contract later settled at ₹8,345, marking a drop of ₹913, or 9.86 percent on the MCX.

Global Crude Benchmarks Also Move Higher​

In the international market, crude benchmarks recorded gains:

• West Texas Intermediate (WTI) crude for May delivery rose by USD 2.68, or 3.04 percent, to USD 90.81 per barrel
• Brent crude for June delivery increased by USD 2.80, or 2.92 percent, to USD 98.72 per barrel in New York

Geopolitical Uncertainty Drives Market Volatility​

Market participants continue to track developments in West Asia, particularly around Iran and the Strait of Hormuz, which remains a critical route for global oil supply.

Kotak Securities noted that oil prices moved higher as investors refocused on supply risks following remarks from Iranian Deputy Speaker Ali Nikzad, who indicated that conditions in the Strait of Hormuz may not stabilise soon.

The brokerage also pointed to reports suggesting that several Gulf countries could be nearing a decision to enter the conflict, adding to concerns over potential supply disruptions.

Conflicting Signals Add to Price Swings​

Crude oil markets have been witnessing sharp volatility due to mixed developments.

WTI crude saw a significant drop of over 10 percent on Monday, falling to around USD 84.3 per barrel after indications that the United States and Iran had engaged in talks and halted strikes on Iranian power and energy infrastructure.

However, prices later recovered and closed above USD 88 per barrel after Iranian state media denied any direct negotiations with Washington, keeping uncertainty elevated.

Strait of Hormuz Remains Key Trigger​

According to analysts, the evolving situation around the Strait of Hormuz continues to drive sharp swings in crude oil prices, with markets reacting quickly to any developments impacting supply expectations.