Global oil markets surge as West Asia conflict intensifies geopolitical tensions and threatens critical energy infrastructure. NYMEX crude has climbed to near one-year highs, with India's MCX crude futures reaching Rs 7,800 per barrel, their strongest level since October 2023. The Strait of Hormuz, through which approximately 20 percent of global oil trade flows, faces mounting supply risks from military strikes and retaliatory attacks. Over 200 vessels have already suspended transit, signaling severe disruption potential. Refinery vulnerabilities compound concerns as damaged facilities could trigger immediate production stoppages and sharp price acceleration. Traders have embedded a substantial war premium into futures contracts, amplifying volatility as markets reassess supply security.
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