Oil climbs 13% to four‑year high as escalation near Strait of Hormuz threatens supply routes

Oil prices recorded their steepest jump in four years after renewed conflict in West Asia prompted tanker operators to halt movements through the Strait of Hormuz, one of the world’s most vital energy corridors. Brent crude briefly surged more than 13 per cent past USD 82 a barrel, while West Texas Intermediate traded near USD 72, reflecting mounting supply fears as geopolitical hostilities intensified.

The price spike followed a weekend of heavy military action, with Israel launching fresh strikes on Tehran and Iran responding with missile barrages. Iranian officials said three tankers were damaged off the Gulf coast, resulting in one fatality. The disruption sharply tightened market sentiment, with shipowners and traders electing to suspend transits amid rising security risks in the region.

As of 7:22 AM, Brent Crude price was trading 7.78 per cent higher at USD 77, and WTI Crude was trading 5.55 per cent higher at usd 70.79.

Notably, India imports approximately 90 per cent of its crude oil needs, a significant portion of which comes through the Strait of Hormuz, a crucial but vulnerable chokepoint for global oil supplies.

The tension in the region escalated as Iran's Supreme Leader Ayatollah Ali Khamenei was killed in Israeli and US strikes. Iranian state media confirmed his death on Sunday. Iran declared 40 days of national mourning after Khamenei's death.

Iranian Cabinet warned that this 'great crime will never go unanswered' after Khamenei is killed by US-Israeli campaign, reported AP. Iran's Revolutionary Guard said 'the most-intense offensive operation' ever coming to target Israel, US Mideast bases, reported AP.

India’s crude oil sourcing pattern between December 2025 and January 2026 shows Russia maintaining its position as the country’s largest supplier, accounting for 22.8 per cent of total import volume and 21.8 per cent of value, data from Directorate General of Commercial Intelligence and Statistics indicated.

Iraq followed with 19.6 per cent of volume and 18.9 per cent of value, while Saudi Arabia contributed 16 per cent of volumes and 16.5 per cent of the import bill. The UAE supplied 11.4 per cent of crude by volume and 12.6 per cent by value. The United States, Kuwait, Brazil, and Angola formed the next tier of suppliers, each contributing between 3.7 per cent and 5.8 per cent of India’s total crude intake during the period.

Beyond the major sources, India continued diversifying with smaller but steady inflows from Qatar, Nigeria, Colombia and Egypt, each contributing around 0.8 per cent to 2.6 per cent of volumes. Limited shipments also arrived from Oman, Guyana, and Congo, each accounting for less than 1 per cent of the crude mix.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)