Brent Crude and WTI Prices Rise
Mumbai, March 26 – Global oil prices jumped to above $100 per barrel on Thursday following a statement from Iran indicating it was not in direct negotiations with the United States to end the conflict in the Middle East.Brent crude futures rose by 1.21 percent to $103.46 per barrel, while US West Texas Intermediate (WTI) crude jumped by 1.35 percent to $91.54 per barrel. The price increases reflect ongoing tensions in the region.
Iranian Foreign Minister Abbas Araghchi stated that exchanges between Tehran and Washington through intermediaries should not be interpreted as negotiations. Tehran is also likely to reject a ceasefire proposal supported by the United States.
Impact on India's Economy
Earlier this week, international crude oil prices experienced a sharp decline due to growing hopes for a ceasefire in the West Asia region. However, the latest developments have reversed this trend.Experts suggest that this price correction could offer some relief to India's macroeconomic indicators, including inflation and the Current Account Deficit (CAD). Technical indicators are currently testing key support levels.
According to SBI Research, for India, every $10 per barrel movement in crude typically impacts the CAD by 0.3–0.5 percentage points of the GDP and raises CPI inflation by 20–30 basis points, depending on pass-through.
Strait of Hormuz Access
Iran has announced it will not impose restrictions on vessels belonging to five "friendly" countries, including India, allowing them to pass through the strategically crucial Strait of Hormuz. Access remains limited for other nations.Alongside India, ships from Russia, China, Pakistan, and Iraq have been granted safe passage through the key maritime chokepoint. Vessels linked to countries seen as adversaries or involved in the ongoing conflict will not be permitted transit. Ships from the United States, Israel, and certain Gulf nations playing a role in the current crisis will not receive clearance to transit through the strait.
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