Crude oil futures traded more than 1 per cent higher on Thursday morning after the US warned of military action against Iran if it does not enter a nuclear deal.

At 9.45 am on Thursday, April Brent oil futures were at $68.19, up by 1.22 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $64.11, up by 1.42 per cent. February crude oil futures were trading at ₹5910 on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday against the previous close of ₹5802, up by 1.86 per cent, and March futures were trading at ₹5909 against the previous close of ₹5810, up by 1.70 per cent.

In their Commodities Feed for Thursday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said the key uncertainty facing the market is the potential for escalation between the US and Iran. US President Donald Trump has warned Iran that time is running out to strike a deal, as US ships move towards the region.

“Clearly, this more aggressive rhetoric has left the oil market nervous about the potential for supply disruptions. Iran pumps around 3.3 million barrels a day of crude oil, while exporting around 1.5 million barrels a day. This will be the most immediate supply concern,” they said.

However, there are also concerns about what this could mean for regional oil supplies. Any escalation may pose a risk to Persian Gulf oil flows through the Strait of Hormuz, where around 20 million barrels a day of crude oil passes, they said.

Meanwhile, latest data by the US EIA (Energy Information Administration) showed a decline in crude oil inventories in the US for the week ending January 23.

According to EIA, US commercial crude oil inventories decreased by 2.3 million barrels for the week ending January 23. Total motor gasoline inventories increased by 0.2 million barrels from last week, and distillate fuel inventories increased by 0.3 million barrels. Propane/propylene inventories decreased 4.7 million barrels from last. Total commercial petroleum inventories decreased by 6.8 million barrels last week.

Total products supplied in the US over the last four-week period averaged 20.3 million barrels per day, 0.1 per cent below the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.3 million barrels per day, down by 0.4 per cent from the same period last year. Distillate fuel product supplied averaged 3.7 million barrels per day over the past four weeks, down by 4.8 per cent from the same period last year. Jet fuel product supplied was up 5.5 per cent compared with the same four-week period last year.

February copper futures were trading at ₹1,384 on MCX during the initial hour of trading on Thursday against the previous close of ₹1,321.70, up by 4.71 per cent.

Published on January 29, 2026