Oil prices surge on Strait of Hormuz tensions, Brent hits three-week peak

Crude oil prices climbed to their highest levels in three weeks on Wednesday, driven by renewed uncertainty surrounding one of the world's most strategically important energy corridors. Brent crude futures rose 54 cents to settle at $91.56 per barrel, marking a 0.59% increase, while US West Texas Intermediate crude gained 59 cents to reach $85.53, up 0.69% by late morning trading.

The uptick reflects growing market sensitivity to developments affecting the Strait of Hormuz, through which roughly one-fifth of globally traded petroleum passes. Any disruption to shipping lanes in the region has traditionally triggered swift price reactions, as traders price in potential supply constraints.

The modest but consistent gains suggest investors are maintaining a cautious stance on energy supplies amid broader geopolitical tensions. Market analysts have noted that crude remains range-bound, with prices balancing between concerns over Middle Eastern stability and softer demand signals from major consuming economies.

For Indian consumers and businesses reliant on petroleum imports, the price movements carry immediate implications. India, one of the world's largest crude importers, typically tracks Brent prices closely as a benchmark for domestic fuel costs and inflation pressures.