Crude oil rises on reports of Iran adopting more offensive stance

Crude oil prices surged on Tuesday as reports emerged that Iran was preparing to adopt a more aggressive approach in the West Asia conflict. By 10:04 am, Brent oil futures were trading at $91.49, up 0.68%, while WTI crude oil futures reached $84.41, up 0.80%. August crude oil futures on the MCX increased from ₹8063 to ₹8152, a 1.10% rise, and September futures jumped from ₹8020 to ₹8105, a 1.06% increase.

A senior Iranian official cited by Reuters stated that Iranian entities must be prepared to escalate tensions in the Strait of Hormuz and the wider region, with Iran ready to make difficult decisions and take action if diplomacy fails. The memorandum of understanding for a peace agreement between the US and Iran, signed on June 17, expired on August 17.

The expiration of the agreement has raised concerns, with US President Donald Trump asserting on Truth Social that the top priority is preventing Iran from acquiring a nuclear weapon. US Special Envoy Jared Kushner told Fox News that US-Iranian government talks are more robust than ever, though he did not provide further details. August natural gas futures on the MCX opened at ₹259, up 0.43% from the previous close of ₹257.90. On the NCDEX, August cottonseed oilcake contracts opened at ₹4310, a 0.68% rise from ₹4281.