Oil prices sharply increased today, with Brent crude crossing the $100 per barrel mark amid escalating tensions between the US and Iran. The surge comes as uncertainty over the potential end to the conflict intensifies, with Iran dismissing a recent US ceasefire offer.
Brent crude rose by 1.56%, settling at $103.81 a barrel, while US West Texas Intermediate (WTI) crude futures gained 1.59%, reaching $91.76. The rise reflects concerns over supply disruptions, especially with the Strait of Hormuz — a crucial passage for approximately 20% of global oil and natural gas shipments — facing near-total halt due to ongoing hostilities.
The US reportedly sent a ceasefire proposal to Iran through intermediaries, prompting a review from Tehran. However, Iran’s Foreign Minister Abbas Araghchi stated that while communication has occurred, Tehran has no intention of engaging in talks or halting its current stance. “We are reviewing the proposal, but we do not intend to hold negotiations at this time,” he said.
Meanwhile, US President Donald Trump’s 15-point plan, delivered via Pakistan, seeks to eliminate Iran’s stocks of highly enriched uranium, end its nuclear enrichment activities, restrict ballistic missile programs, and halt financial support for regional allies. Sources within the Israeli cabinet confirmed the details of the proposal, which aims to pressure Iran amid ongoing hostilities.
The conflict has severely impacted oil shipments through the Strait of Hormuz, a vital artery for global energy supplies. The International Energy Agency described the situation as “the most significant disruption in oil supply history,” raising fears of further price hikes should tensions escalate or critical infrastructure be targeted.
Market analysts note that oil prices remain sensitive to geopolitical developments. Jigar Trivedi, Senior Research Analyst at IndusInd Securities, observed that the conflicting signals from the US and Iran are driving prices higher. “WTI crude futures have resistance near $95 per barrel, and Brent could climb to $106. MCX crude futures may rise to Rs. 8,650,” he added.
On the domestic front, Indian crude oil futures closed at ₹8,511 on March 25, down ₹225 or 2.58%. Trading will be partially halted on March 26, 2026, due to Ram Navami; the morning session (9:00 AM – 5:00 PM) will be closed, but trading will resume in the evening from 5:00 PM to 11:30 PM.
The current geopolitical tensions have raised questions about whether crude oil can reach new highs. Experts suggest that if hostilities intensify or infrastructure is targeted, oil prices could surge further, fueling inflationary pressures worldwide.
Market watchers remain cautious, closely monitoring developments in the Middle East and their impact on global energy markets.
