New Delhi, Aug. 21: Oil prices remained under pressure on Friday but were headed for their second straight weekly gain as uncertainty surrounding the US-Iran conflict continued to raise concerns over global energy supplies.
Brent crude briefly climbed to $94.71 a barrel before easing, reflecting persistent concerns about disruptions to supplies. The market has remained sensitive to developments in the Middle East, particularly around the Strait of Hormuz, a major route for international oil shipments.
The latest rise in crude prices has also added to concerns over inflation in major economies. Higher energy costs can increase transportation and production expenses, potentially putting pressure on businesses and consumers.
Investors are closely watching diplomatic and geopolitical developments for signs that supply risks could ease. At the same time, the prospect of tighter sanctions against Iran has added another layer of uncertainty for energy markets.
For oil-importing economies such as India, sustained increases in crude prices could raise import costs and put pressure on inflation, corporate margins and the country’s external balance.
Market participants are therefore expected to keep a close watch on crude movements and developments in the Middle East as they assess the outlook for global energy markets.