Noida, Sep 1 (APAC Media): Crude oil prices settled 2.07% higher at ₹8,149, supported by rising tensions in the Middle East after the United States and Iran exchanged strikes for the first time in nearly a month, reigniting concerns over crude shipments through the strategically important Strait of Hormuz.
U.S. forces targeted Iranian rocket launchers that were reportedly preparing to deploy mines in the waterway, while Iran claimed it had attacked U.S. military bases in Jordan. Tehran also reported that a supertanker attempting to use the southern route of the Strait of Hormuz struck two mines, although the incident has not been independently confirmed.
“The market is once again pricing in a higher risk premium as any disruption in the Strait of Hormuz could have a significant impact on global crude supplies,” said a market analyst. “For now, traders are watching developments closely because even a temporary disruption could quickly tighten the physical market.”
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Around 6-8 million barrels per day of crude, largely from other Gulf producers, is estimated to continue moving through the Strait, keeping supply disruption concerns elevated.
The International Energy Agency expects global oil supply to decline by 4.3 million barrels per day, or about 4%, this year, deeper than its earlier estimate of a 3.7 million bpd decline. Total global supply is projected at 102.02 million bpd. The agency cited uncertainty over the reopening of the Strait of Hormuz and unrestricted shipping through Bab el-Mandeb as major risks.
Iran will immediately reciprocate if the United States fulfils its commitments under an interim agreement signed in June, Iranian President Masoud Pezeshkian said at the Shanghai Cooperation Organisation summit in Bishkek, Kyrgyzstan, according to the news agency.
“If the United States fulfils its commitments under the interim agreement, Iran is ready to immediately fulfil its own commitments in return,” Pezeshkian said.
The June 17 memorandum of understanding between Washington and Tehran expired on August 17. The agreement was intended to facilitate peace negotiations and included provisions aimed at reopening the Strait of Hormuz, which has emerged as a major flashpoint in the ongoing conflict.
Meanwhile, U.S. crude inventories rose by 95,000 barrels to 428.9 million barrels in the week ended August 21, well below expectations for a 597,000-barrel increase. Cushing inventories climbed by 1.2 million barrels. Gasoline stocks fell by 2.5 million barrels, while distillate inventories declined by 2.2 million barrels, pointing to firm demand for refined products.
OPEC also cut its 2026 global oil demand growth forecast to 580,000 bpd, its fourth consecutive downward revision.
Speculators’ combined Brent and WTI net long positions fell to a three-week low of 333,914 contracts, although NYMEX WTI net longs edged up by 538 contracts to 104,573.
Technically, the market remained under short covering, with open interest falling 4.51% to 10,008 contracts as prices gained ₹165.
“Price action suggests that short covering is supporting the recovery, but traders will need a sustained breakout to confirm stronger upside momentum,” the analyst said.
Crude oil has support at ₹8,047, with a break below potentially pushing prices toward ₹7,945. On the upside, resistance is seen at ₹8,256, above which prices could advance toward ₹8,363.
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Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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