Global crude oil prices extended their gains on Thursday as a drone attack on Saudi Arabia's Shaybah oilfield heightened concerns over energy supplies amid continuing geopolitical tensions.
Brent crude rose 1.7% to $110.80 per barrel, while West Texas Intermediate gained 1.45% to $98.56. The attack near Saudi Aramco's Shaybah facility reportedly killed two people, although oilfield operations remained unaffected.
The US also ordered the evacuation of some embassy personnel and family members from Saudi Arabia amid heightened security concerns.
Hormuz Disruption Keeps Prices Elevated
International oil prices have risen approximately 80% this year as the US-Israel conflict with Iran disrupted energy supplies and threatened critical infrastructure.
The closure of the Strait of Hormuz, a major international oil shipping route, has intensified fears of prolonged shortages.
US Secretary of State Marco Rubio recently described reaching a peace agreement with Iran as extremely difficult.
He indicated that Washington would maintain economic pressure until Tehran stopped targeting commercial vessels in the strait.
Iranian Foreign Minister Abbas Araghchi, meanwhile, ruled out reopening the waterway until Washington accepted Tehran's conditions.
Iran also rejected proposals to transfer approximately 400 kg of nuclear material into Russian custody.
Reports suggesting an imminent US-Iran agreement were subsequently dismissed as inaccurate.
Renewed hostilities between Russia and Ukraine have further complicated global energy supply conditions.
Disruptions in physical energy markets have pushed petrol and diesel prices higher, adding to inflation concerns.
Against this backdrop, India revised its windfall taxes on petroleum product exports, effective Oct 16.
The government increased the petrol export duty to ₹2.5 per litre from ₹0.5 per litre. However, the diesel export levy was reduced to ₹8.5 per litre from ₹16 per litre.
India initially introduced windfall taxes on fuel exports in July 2022 before withdrawing them two years later.
The duties were reinstated in March 2026 amid rising energy prices linked to the Middle East conflict.
Authorities currently review these export levies every fortnight, adjusting rates according to international crude oil and petroleum product prices.
