Commodities● Neutral
Strait of Hormuz disruption tests crude's $100 ceiling
Brent crude fell from $100 a barrel as the US and UK plan a coalition to reopen the Strait of Hormuz. Indian pump prices have held steady since May, but analysts said sustained disruption could force OMCs to raise rates.
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Retail fuel prices across India held steady on Saturday even as Brent crude fell from $100 a barrel, retreating after a week of fighting in West Asia that closed the Strait of Hormuz to commercial shipping.
State-run oil marketing companies (OMCs) have not adjusted pump prices since May 25, insulating Indian consumers from the global price swings. That stability may not last if the Strait remains closed, analysts said.
Fighting in the region entered its 14th day after a ceasefire collapsed. US missiles struck targets across Iran on Friday, and President Donald Trump vowed "major military punishment" for Tehran. Iran's Revolutionary Guard advised residents of neighboring countries to stay away from US bases and troops.
Iranian-backed Houthis launched attacks on Saudi oil tankers in the Red Sea, disrupting trade through the Suez Canal. The Strait of Hormuz, a chokepoint for roughly 20% of global oil shipments, remained closed to commercial traffic.
Brent crude touched $100 a barrel earlier in the week before falling roughly 4% on Friday to settle near $97, its biggest one-day drop since late June. The retreat came as the US and UK planned a high-level meeting in London next week to form an international coalition to safeguard shipping in the Strait, according to an Axios report.