New Delhi | Crude oil prices climbed nearly 7 per cent to Rs 9,759 per barrel in futures trade on Monday, tracking strong global trends after the US announced a blockade of the Strait of Hormuz following failed negotiations with Iran.
On the Multi Commodity Exchange (MCX), crude oil for April delivery appreciated Rs 606, or nearly 7 per cent, to Rs 9,759 per barrel in a business turnover of 8,767 lots. The contract touched an intraday high of Rs 9,850 per barrel, up by Rs 697, or 7 per cent.
The May contract also advanced Rs 550, or 6.47 per cent, to Rs 9,050 per barrel in 7,779 lots.
MCX crude oil prices opened with a sharp gap-up and hit the upper circuit, gaining more than 6 per cent amid escalating US-Iran war concerns, Kaveri More, Commodity - Technical Research at Choice Broking, said.
Globally, crude oil prices also moved higher.
The West Texas Intermediate (WTI) crude contract for May increased USD 8.08, or 8.37 per cent, to USD 104.65 per barrel on the NYMEX, while Brent oil for June delivery gained USD 7.55, or 7.93 per cent, to USD 102.75 per barrel in New York.
"Crude futures on Monday surged sharply after President Donald Trump announced a US blockade of the Strait of Hormuz following the collapse of negotiations with Iran, intensifying fears of a broader supply disruption in the global energy market," More said.
She noted that negotiations between the US and Iran ended without progress, as Washington accused Tehran of refusing to limit its nuclear ambitions.
Iran demanded control over the Strait of Hormuz, war reparations, a wider regional ceasefire, and access to frozen overseas assets.
More further said that plans to interdict vessels paying tolls to Iran significantly escalated geopolitical tensions, lifting oil and gas prices amid renewed concerns over inflationary pressure and weaker global economic growth.
However, Saudi Arabia's confirmation of restoring full pumping capacity through its East-West pipeline and resumption of output from its Manifa field provided some supply-side relief, she added.