New Delhi: Crude oil futures rebounded from early losses to gain more than 1 per cent on Thursday, tracking firm global trends as fresh US sanctions aimed at isolating Iran stoked concerns over possible disruptions to global oil supplies.
On the Multi Commodity Exchange (MCX), crude oil for the September delivery appreciated by Rs 96, or 1.18 per cent, to Rs 8,247 per barrel.
The October contract also advanced Rs 91, or 1.14 per cent, to Rs 8,097 per barrel on the MCX.
Analysts said the rally marked the fifth straight session of gains for MCX crude futures, as investors weighed the impact of the latest US pressure on Iran's oil trade.
Brokerage firm Kotak Neo, formerly Kotak Securities, said the market is now pricing in the risk of tighter Iranian crude flows, with the Strait of Hormuz once again emerging as a key pressure point.
The gains were mirrored in international markets, with Brent crude futures for October delivery rising USD 1.95, or 2.13 per cent, to USD 93.57 per barrel on the Intercontinental Exchange.
The West Texas Intermediate (WTI) crude oil for the same-month contract climbed USD 1.87, or 2.22 per cent, to USD 86.26 per barrel on the New York Mercantile Exchange.US President Donald Trump announced a fresh campaign to isolate Iran economically, warning countries and entities supporting Tehran that they could face severe economic consequences.
In a post on Truth Social, Trump said, "I am announcing the most crushing economic operation ever taken against any country! This will be Economic Warfare and Isolation on an unprecedented scale." He added that "Any country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face tremendous economic consequences." However, the announcement came without details on the specific measures or countries that could be targeted, analysts said.
The move signals a further shift in Washington's strategy towards economic pressure on Tehran after Trump paused US attacks on Iran last month following two weeks of nightly strikes, they added.
Meanwhile, US Treasury Secretary Scott Bessent also said last week that Washington would step up efforts to isolate Iran economically.
Kotak Neo said market participants will monitor potential supply disruptions, retaliatory action around the Strait of Hormuz and whether sanctions force further rerouting of Iranian crude flows.
Any disruption to flows through the strategic shipping lane could add another layer of risk to an already sensitive oil outlook, it said.
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