New Delhi: Crude oil futures surged to a two-week high of Rs 6,932 per barrel in domestic trading, climbing by Rs 227 on Wednesday as renewed hostilities between the United States and Iran sparked a rally across global benchmarks.

On the Multi Commodity Exchange (MCX), crude oil for July delivery rose by 227 Rs, or 3.39 per cent, to Rs 6,932 per barrel, with a business turnover of 19,697 lots. The commodity was last seen near these heights on 23 June, when the contract settled at Rs 6,964 per barrel.

Similarly, the August contract advanced by Rs 206, or 3.06 per cent, to Rs 6,930 per barrel, across a volume of 2,872 lots on the MCX.

Market analysts stated that fresh geopolitical frictions in the Middle East, coupled with anxieties over potential supply interruptions through the Strait of Hormuz, drove the aggressive buying.

"The latest escalation comes just weeks after the United States and Iran signed an interim memorandum of understanding (MoU) to halt the conflict," traders noted. "However, the fragile truce has come under strain, with tensions over the control of the Strait of Hormuz flaring up again on Wednesday."

On the international stage, Brent crude futures for September delivery gained $2.56, or 3.45 per cent, to reach $76.72 per barrel on ICE Futures Europe.

Concurrently, West Texas Intermediate (WTI) for August delivery increased by $2.30, or 3.27 per cent, to $72.74 per barrel on the New York Mercantile Exchange (NYMEX), marking its highest value in a fortnight. It had last traded around this mark on 23 June 2026, when it stood at $73.21 per barrel.

"US WTI crude oil surpassed the USD 72 mark on Wednesday and rose by more than 5 per cent this week after the US military conducted additional air strikes in Iran," said Aamir Makda, a commodity and currency analyst for technical research at Choice Broking.

The United States also revoked a temporary sanctions waiver that had permitted Tehran to export and supply crude oil to international markets, a policy shift that could restrict global energy availability. Makda observed that these countermeasures followed a series of recent assaults on commercial ships navigating the Strait of Hormuz.

In response, Iran retaliated by launching strikes against several US military facilities located in Bahrain and Kuwait.

Financial market participants stated that oil prices are expected to exhibit continued volatility as investors maintain a close watch on the geopolitical situation in the Middle East, particularly around the Strait of Hormuz, a choke point responsible for the transit of roughly a fifth of the world's petroleum supply.

PTI