Brent nears $110 a barrel as West Asia conflict deepens, Hormuz talks delayed

Brent crude prices near $110 per barrel as West Asia conflict escalates, as talks between Iran and other Gulf nations to operate in the Strait of Hormuz were postponed. Meanwhile, Houthi militia took control of Yemen's Red Sea coastline and attacked a Saudi airbase, further heightening tensions in the region. The November contract of Brent on the Intercontinental Exchange reached $109 per barrel, a 4.20% increase from the previous close.

West Texas Intermediate rose 4.42% to $104.47 per barrel on the New York Mercantile Exchange. Reports stated that the Houthis seized control of the Bab al-Mandeb Strait, a critical waterway handling 12% of global trade, including 11% of oil. Yemen's Houthis claimed responsibility for a ballistic missile and drone attack on a Saudi airbase in Khamis Mushait.

Negotiations between Iran and Gulf Arab states were postponed in Oman at the request of some regional countries, following an attack on an Iranian commercial vessel in the Strait of Hormuz, which killed one person. The conflict is raising concerns about supply disruptions, potential price hikes, and increased pressure on India, which imports nearly 90% of its crude oil.

A Bank of Baroda study estimates that a persistent $1 rise in crude prices could raise India's annual import bill by ₹18,000 crore. India's crude oil import bill for April-July reached $63.37 billion, a 56% increase from the previous year, accounting for 17% to 25% of the country's total merchandise imports. The Bank of Baroda predicts that West Asian crude oil and condensate exports will average 10 million to 16 million barrels per day through 2027, down from 20 million barrels per day before the war in early 2026.

S&P Global Energy forecasts crude oil prices to remain in the $80-$100 range through 2027, with Brent averaging around $90 or higher for the rest of 2026 and $86 next year.