Oil prices surge past $90, Asian markets slip, rupee weakens
Asian stock markets declined on Monday as rising crude oil prices renewed inflation concerns and dampened investor sentiment. Brent crude futures rose more than 2 per cent to trade above USD 90 a barrel, driven by escalating tensions in the Gulf region that disrupted oil shipments through the Strait of Hormuz.
Brent crude, the global benchmark, gained USD 2.09, or 2.37 per cent, to settle at USD 90.19 a barrel, its highest level since June 11. The increase extended last week's rally, during which prices jumped 15.9 per cent — the sharpest weekly gain since April.
US West Texas Intermediate (WTI) crude also climbed USD 1.71, or 2.07 per cent, to USD 84.20 a barrel, its highest since June 12.
The surge in oil prices follows heightened hostilities between the United States and Iran in the Middle East, which have disrupted the flow of oil through the Strait of Hormuz, a critical waterway for global energy supplies. Analysts warn that sustained high oil prices could fuel inflation and weigh on economic growth in import-dependent countries.
In India, the rupee opened weaker at 96.41 against the US dollar on Monday, reflecting the impact of rising oil prices on the country's import bill. A weaker rupee makes oil imports more expensive, potentially increasing domestic fuel costs and inflationary pressures.
Global markets reacted cautiously, with major Asian indices posting losses. The decline underscores investor concerns about the economic implications of prolonged geopolitical instability and higher energy costs.
