New Delhi (IANS): Global oil prices surged on Monday as escalating tensions in West Asia intensified following the Yemen-based, Iran-backed Houthi group’s entry into the conflict.
International benchmark Brent crude futures jumped as much as 3.66 percent to an intra-day high of $116.70 per barrel, approaching a new 52-week high. Similarly, U.S. benchmark West Texas Intermediate (WTI) climbed over 3 percent to surpass the $103 per barrel mark.
Weekend missile launches by Houthi forces targeting Israel triggered the latest price spike. The group warned that it will continue its attacks until strikes on Iran and its allied militias cease, creating new risks for already strained global energy markets.
Despite ongoing diplomatic efforts, Brent prices have surged over 50 percent in March and are now revisiting early-war highs.
Analysts identified crude oil as the most critical macro variable at this stage.
“Market participants are increasingly pricing in a prolonged supply disruption scenario,” they noted. “Some global estimates indicate a potential spike toward $200 per barrel if tensions persist.”
The analysts added that for an import-dependent economy like India, these prices threaten higher inflation, squeeze corporate margins, and worsen the current account outlook.
On the global front, the energy crisis pressured equity markets, pushing U.S. and Asian stocks into negative territory. Wall Street ended the day lower; the S&P 500 closed 1.67 percent down, while the Nasdaq declined about 2 percent.
In Asia, Japan’s Nikkei plunged nearly 4 percent, Hong Kong’s Hang Seng declined over 1 percent, and South Korea’s Kospi slipped almost 3 percent.
Domestic equity indices also felt the heat. Both the Sensex and Nifty began the session on a weak note, declining over 1 percent each in early trade as the West Asia conflict entered its fifth week and expanded further.
