New Delhi | Crude oil prices surged by Rs 310 to a fresh record high of Rs 9,260 per barrel in futures trade on Wednesday, tracking strong gains in global benchmarks amid escalating tensions in West Asia.
On the Multi Commodity Exchange (MCX), the most-active June crude oil contract climbed by Rs 310, or 3.46 per cent, to an all-time high of Rs 9,260 per barrel.
"Crude oil extended its rally for a third consecutive session on Wednesday as regional escalation intensified overnight," brokerage firm Kotak Neo said.
The US and Iran have exchanged fire, with Iran launching missiles toward Kuwait and Bahrain, which were intercepted by US and Bahraini defence forces. The US military also shot down three drones targeting civilian shipping in the Strait of Hormuz, while Iran's Islamic Revolutionary Guard Corps (IRGC) claimed strikes on US military assets.
In the international markets, Brent crude futures for August delivery rose nearly 3 per cent to USD 98.62 per barrel, while West Texas Intermediate (WTI) advanced 3 per cent to USD 96.34 per barrel.
Analysts said investors are closely monitoring ongoing diplomatic efforts in West Asia, including talks related to Israel and Lebanon, with any agreement involving the Strait of Hormuz likely to be crucial for easing geopolitical risk premiums embedded in oil prices.
Oil markets have remained volatile in recent sessions amid conflicting signals on US-Iran negotiations.
President Donald Trump said talks with Tehran remain active and suggested a potential agreement on reopening the Strait of Hormuz could be reached within a week; persistent military exchanges have kept traders on edge, they added.
