Commodities● Neutral
Indian Fuel Prices Hold Steady as Brent Surges 27% in Two Weeks
Indian petrol and diesel prices stayed flat Sunday despite a 27% surge in Brent crude to $96.78, as state-run OMCs held rates steady since May. Geopolitical tensions around the Strait of Hormuz and Red Sea disruptions keep supply risks elevated.
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Retail petrol and diesel prices across Indian cities held flat on Sunday, even as Brent crude climbed roughly 27% over the past two weeks to settle at $96.78 a barrel Friday, according to Bloomberg. State-run oil marketing companies last revised domestic rates on May 25, raising petrol by Rs2.61 and diesel by Rs2.71 per litre. No further adjustment has followed, leaving consumers insulated from the sharp rally in global crude.
The surge in oil stems from the collapse of a ceasefire between the United States and Iran signed June 17. Fighting has escalated around the Strait of Hormuz, a waterway handling about one-fifth of global oil and gas trade. Iran-backed Houthi militants in Yemen have opened a second front, disrupting tanker movements through the Red Sea. On Saturday, Houthi forces attacked Saudi oil installations at the ports of Jizan and Yanbu, which house facilities of Saudi Aramco, Reuters reported. The Saudi-led coalition struck Houthi military positions in retaliation later that day, Yemen TV reported. The Houthis responded by announcing a blockade of Saudi ports and striking two Saudi-linked oil tankers in the Red Sea.
The United States paused its airstrikes on Iran for the first time in two weeks, Axios reported, citing a directive from President Donald Trump to the military to stop new strikes. White House spokesman Steven Cheung said Trump prefers a diplomatic solution but retains all options if Iran continues what the administration called terrorist activities in the Strait of Hormuz, Bloomberg reported.