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Brent crude oil prices continued to remain around USD 115 per barrel on Monday amid escalating tensions in West Asia, with persistent supply concerns and the risk of further conflict keeping global oil markets on edge.
Crude oil prices have surged more than 5 per cent over the past week and are trading near their 52-week high of USD 117.41 per barrel, reflecting concerns over the impact of the Middle East conflict on global energy supplies. Ponmudi R, CEO of Enrich Money, said the continuing stand-off in the Middle East and the possibility of further escalation remained key concerns for domestic markets. "The continuing stand-off in the Middle East, with the risk of further escalation, remains a key concern for domestic markets. WTI crude is trading around USD 101 USD 102 a barrel, while Brent remains above USD 115, as persistent supply concerns continue to underpin prices and cloud the outlook for energy-importing economies," he said. Concerns over the security of critical infrastructure and energy shipments have added to market uncertainty. On Sunday, the US Department of State ordered non-emergency government personnel and eligible family members to leave Saudi Arabia, citing serious safety risks following recent missile and drone attacks on civilian airports and critical infrastructure by Iranian-backed Houthi forces, according to an announcement by the US Embassy in Riyadh. Meanwhile, US President Donald Trump claimed that oil transit through the Strait of Hormuz had surpassed pre-war levels. He credited the US naval blockade and military operations with maintaining maritime flows. The Strait of Hormuz normally handles around 2025 per cent of global seaborne oil and liquefied natural gas (LNG) flows; any disruptions in the waterway are a significant concern for global energy markets. In recent times, hostilities and drone and missile strikes have also knocked out roughly 3 million barrels per day of regional refining capacity across the Middle East, which is pushing global energy prices. With crude prices remaining elevated amid geopolitical risks and physical supply disruptions, concerns over prolonged instability in the region continue to cloud the outlook for global energy markets and oil-importing economies. (ANI)
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