US-Iran ceasefire collapse pushes crude prices higher

Global crude oil markets are facing heightened volatility and supply risks this week as escalating military conflict in the Middle East threatens two of the world's most critical maritime chokepoints. The collapse of a ceasefire between the United States and Iran, followed by retaliatory strikes, has refocused the crisis on the Strait of Hormuz, while Houthi rebels in Yemen pose a renewed threat to the Bab el-Mandeb Strait.

The immediate trigger was the breakdown of the U.S.-Iran truce, which disintegrated amid a new wave of attacks focused on the Strait of Hormuz. The United States conducted military strikes on Iran, described as a seven-hour operation, and reimposed a naval blockade on vessels traveling to and from Iranian ports. Iran retaliated with strikes on U.S.-linked military installations. These actions have significantly raised the risk of disruption to the Strait of Hormuz, a narrow passage through which a substantial portion of the world's seaborne oil exports flows.

Oil prices have risen in response. Brent crude reached $80.09 per barrel, while West Texas Intermediate (WTI) was at $80.03. In India, crude oil futures surged nearly 6 percent. However, some market...