As tensions between Israel and Iran continue, Brent crude—the key international benchmark—surged by 13% before stabilising around $74 per barrel.
Probal Sen, senior research analyst for the Indian Oil & Gas Sector at ICICI Securities Ltd. stated that escalation of conflicts would generally have a negative impact. However, if supply routes remain unaffected, crude prices are expected to settle between $70 and $75 per barrel, Sen said.
Iran produces 3.2 million barrels of oil every day. In 2023, it was the world’s second-largest source of supply growth after the US, according to the International Energy Agency.
This ongoing conflict between the two nations would drive oil price and could be a “matter of concern for emerging nations like India,” said Aniruddha Sarkar, chief information officer and portfolio manager at Quest investment Advisors Pvt.
Besides, MK Surana, former chairman and managing director, Hindustan Petroleum Corp., predicted that crude may return to $65-range by fourth quarter provided geopolitics remains favourable.