NEW DELHI: Brent crude oil prices have surged above USD 100 a barrel, with some benchmarks even nearing USD110–USD115, as ongoing geopolitical tensions in the Middle East continue to rattle global energy markets. 

This marks a significant milestone in commodity markets, driven largely by fears of supply disruptions linked to the ongoing Iran–US–Israel conflict and instability around the Strait of Hormuz.

The climb above the USD 100 mark reflects deepening investor skepticism about diplomatic efforts to ease the regional crisis, with markets unconvinced that key shipping routes will be safely reopened soon.

Indian financial markets felt the heat, with the rupee weakening sharply against the US dollar as crude prices topped triple-digit levels, adding pressure on import bills and inflation expectations.

Broader global stocks, including major Asian indices, wavered amid rising crude prices and geopolitical uncertainty.

In response to rising global fuel costs, the Government of India has cut excise duties on petrol and diesel to cushion domestic consumers and industries from surging input costs, while also introducing windfall taxes on aviation fuel and diesel exports to shore up revenues.

Higher crude prices typically flow through to elevated gasoline and fuel costs globally, contributing to inflationary pressures. Central banks may face renewed challenges balancing inflation control with economic growth, especially as energy costs rise sharply.