Crude Oil Prices Surge to 2025 High on Israel-Iran War Escalation, Hormuz Strait Closure Fears

Crude oil prices surged sharply on Monday, hitting fresh highs for 2025, as escalating tensions between Israel and Iran fueled fears of a broader regional conflict and potential disruption to global oil supplies through the Strait of Hormuz.

On the Multi Commodity Exchange (MCX), crude oil futures soared past ₹7,500 per barrel — the highest level recorded this year — amid increased geopolitical risk. The spike follows renewed hostilities and military strikes exchanged between Iran and Israel over the weekend, raising concerns over the safety of critical shipping lanes in the Gulf.

Analysts warn that a full-blown conflict could lead to a partial or complete closure of the Hormuz Strait, a vital oil transit chokepoint through which nearly a third of global seaborne crude passes. Any such development would severely disrupt oil supply chains, pushing prices even higher and straining major importers like India.

Brent crude and WTI prices also surged internationally, mirroring market fears of tightening global supply. The rally comes at a time when inflation remains a key concern globally, with higher energy costs likely to have a cascading effect across economies.

Market experts recommend investors remain cautious and watchful as the situation evolves, given the potential impact on inflation, currency, and trade balances.

With no signs of de-escalation in sight, crude oil is expected to remain volatile in the near term, driven by geopolitical developments and OPEC+ supply dynamics.