Crude oil prices surge; Cross $100 per barrel, rupee falls sharply

MUMBAI: Amidst the escalating tensions in the Middle East, international oil prices have crossed $100. This is the first time in four years that oil prices have increased. Crude oil is currently trading at $110 per barrel in the international market. In this situation, the Indian stock market also faced a major collapse today.

With this, the value of the Indian rupee also fell. When trading began today, the rupee fell by 47 paise against the dollar to Rs 92.21. Last week, the rupee had reached an all-time low of Rs 92.31. Economists have assessed that the rupee may fall further if the price of crude oil remains above $100.

There has been a 28 percent increase in crude oil prices since last Friday. Oil prices have crossed $100 for the first time since Russia's invasion of Ukraine in 2022. Meantime, US President Donald Trump has dismissed the increase in international oil prices.

20 percent of the world's oil supply passes through the Strait of Hormuz. 15 million barrels of oil pass through it from the Middle East every day. Following Iran's threat, oil supply through Hormuz has been disrupted. As a result, countries such as Iraq, Kuwait, and the UAE have reduced oil production. This is the reason for the rise in prices.