Crude oil nears $100: Why rising price is bad news for India

Global crude oil prices moved closer to the $100-a-barrel mark on Thursday as tensions between the United States and Iran continued to rise, increasing worries about possible disruptions to oil supplies. The jump in oil prices also affected investor sentiment, with Indian stock markets extending their losses amid concerns over higher import costs and global uncertainty.At the time of writing, Brent crude was trading at $98.28 per barrel, up 4.48%, reflecting growing concerns over the geopolitical situation in the Middle East.SUPPLY CONCERNS PUSH OIL PRICES HIGHERMarket experts said the recent rally in crude oil has been driven largely by fears that the conflict could affect global oil supplies. Traders are closely watching developments in the region, particularly around key shipping routes that carry a significant share of the world's oil.Axis Securities said, "WTI Crude Oil prices approached a six-week high yesterday amid mounting supply concerns as tensions between the U.S. and Iran continued to escalate." The brokerage added that fresh security concerns in the Red Sea have further strengthened oil prices."Additional support came from renewed threats to shipping in the Red Sea by the Iran-backed Houthi militia in Yemen, raising fears of potential disruptions to global oil supplies," Axis Securities said.INDIAN MARKETS FEEL THE PRESSURE The rise in crude oil prices added to the pressure on Indian equity markets, which remained under stress throughout the trading session.Apart from the geopolitical tensions, investors also remained cautious due to fresh concerns over global spending on artificial intelligence, leading to broad-based selling in equities.Higher crude oil prices are a key concern for India as the country imports most of its crude oil requirements. Costlier oil can increase the country's import bill, put pressure on the rupee and add to inflation by making fuel, transport and several everyday goods more expensive.WHAT INVESTORS ARE WATCHINGMarket participants are now closely tracking developments in the Middle East, as any further escalation could keep oil prices elevated. Investors will also watch whether shipping routes in the Red Sea remain affected, as any disruption could tighten global supplies further.For Indian markets, crude oil prices will remain an important factor in the coming days. If prices continue to rise towards or above the $100-per-barrel mark, it could keep investors cautious and add to volatility across sectors.- EndsPublished By: Jasmine anandPublished On: Jul 23, 2026 16:09 IST