Brent at $117.45, MCX November ₹9,783 after over 3% surge
Crude oil prices just shot up more than 3% on Friday, with MCX futures for November hitting ₹9,783 per barrel, a jump of ₹299 in one day.
Brent crude also climbed to $117.45 per barrel, marking its highest level since April 30.
Geopolitical tensions lift oil risk premium
The main reason behind this price jump is rising geopolitical tension, especially talk of possible U.S.-Israeli strikes on Iranian nuclear sites.
Iran has warned it might target Gulf oil facilities if that happens, making markets nervous.
Even Aramco moved staff out of its Dhahran headquarters as a precaution.
Head of Commodity and Currency Research at brokerage platform Kotak NEO, Anindya Banerjee, points out that these risks are pushing up the "risk premium," and ongoing conflict is adding to worries about wider disruptions in global oil supply.