Crude Oil Prices Set to Rise

Global tensions in West Asia are beginning to unsettle brokerage firms, with fears that crude oil prices may surge further if the conflict does not ease soon. Kotak Securities has warned that Brent crude is currently trading between 109 and 110 dollars per barrel, and could climb to 130–140 dollars by the end of the month if the situation remains unresolved. Anindya Banerjee, Head of Commodities and Currency Research at Kotak Securities, cautioned that such a spike would pose a serious threat to the Indian economy.

He further stated that rising fuel prices could push retail inflation beyond 5 percent and drag GDP growth below 6 percent. He also highlighted that Brent crude futures are already trading at a premium of 20–30 dollars per barrel. Continued disruption in the Strait of Hormuz could further weaken the Indian rupee, adding to economic pressures.