Crude oil futures traded higher on Friday morning, according to a report by The Hindu Business Line, following reports of Iranian attacks on US military infrastructure in West Asia. At 9.36 am on Friday, September Brent oil futures were at $76.64, up by 0.45 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $72.40, up by 0.44 per cent. On the Multi Commodity Exchange (MCX) in India, July crude oil futures were trading at ₹6917 during the initial hour, against the previous close of ₹6854, up by 0.92 per cent, and August futures were at ₹6926 against the previous close of ₹6865, up by 0.89 per cent.
Geopolitical Driver Behind the Surge
A Reuters report cited by The Hindu Business Line stated that Iranian armed forces launched attacks on US military infrastructure in West Asia on Thursday, following US strikes on Iran's southern coastal and eastern provinces. Citing Iranian media, the report also noted multiple explosions across southern Iran, including Bushehr — where one of the country's nuclear plants is located — along with Konarak, Choghadak and Bandar Abbas. The report, which cited an unnamed American official, said there had been no US attacks in recent hours.
US Strikes and Impact on Supply Routes
The US Central Command released a statement indicating that its forces completed an additional round of strikes against Iran on July 8 to further degrade Iran's ability to attack commercial shipping and innocent civilian mariners in the Strait of Hormuz. According to the statement, US forces struck approximately 90 Iranian military targets, including air defence systems, coastal surveillance assets, missile and drone storage sites, naval capabilities, and military logistics infrastructure along Iran's coastline. These strikes followed successful execution of offensive strikes in Iran the night before. On July 7, US forces hit approximately 80 Iranian military targets, including more than 60 Islamic Revolutionary Guard Corps small boats, to impose heavy costs for Iran violating the ceasefire by attacking three commercial vessels navigating the Strait of Hormuz.
Price Comparison Across Benchmarks
| Contract | Price | Change | Percentage Change |
|---|---|---|---|
| September Brent | $76.64 | +$0.34 | +0.45% |
| August WTI | $72.40 | +$0.32 | +0.44% |
| July MCX Crude | ₹6,917 | +₹63 | +0.92% |
| August MCX Crude | ₹6,926 | +₹61 | +0.89% |
Implications for Energy Markets
The escalation in West Asia directly threatens the Strait of Hormuz, a critical chokepoint for global oil shipments. The US strikes aim to degrade Iran's capacity to disrupt commercial shipping, while Iran's retaliatory attacks signal heightened risk of supply disruption. Traders are pricing in a geopolitical risk premium, as reflected in the day's gains across both international and domestic benchmarks. The ongoing tit-for-tat between the US and Iran underscores the volatility in energy markets, with further price movements likely contingent on any new military developments or ceasefire negotiations.
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