Daijiworld Media Network - New Delhi

New Delhi, Mar 17: Global oil prices extended gains on Tuesday as tensions in West Asia intensified and disruptions in the Strait of Hormuz raised fears of supply shocks.

Brent crude futures rose by $2.48, or 2.5%, to $102.69 per barrel, while US West Texas Intermediate (WTI) crude climbed $2.42, or 2.6%, to $95.92 per barrel in early trade. The surge comes as the Strait of Hormuz—responsible for nearly 20% of global oil and liquefied natural gas transit—remains significantly disrupted amid the ongoing US-Israel conflict with Iran, now entering its third week.

The situation has heightened concerns over tightening supplies, rising energy costs, and global inflationary pressures. Efforts to secure the route have faced resistance, with several European nations declining to deploy warships despite appeals from US President Donald Trump, who warned of consequences for lack of allied support.

The disruption has already impacted production, with the Organization of the Petroleum Exporting Countries member United Arab Emirates reportedly cutting output by more than half due to the crisis.

Meanwhile, the International Energy Agency has indicated that member countries may release additional oil beyond the 400 million barrels already committed from strategic reserves to stabilise markets.

Analysts warn that prices could rise further if tensions persist. Experts say crude may touch $120 per barrel in the near term and could climb to $150 if the conflict prolongs, potentially straining India’s fiscal position and widening disparities across oil and gas companies.