Prices of oil in the international market have risen due to tensions between the United States and Iran. Crude prices were higher during early trade on Tuesday, as tensions in West Asia increased. There was a mixed reaction from the Asian stocks; the stocks in Tokyo and Seoul moved up following the initial fall.

On Tuesday, the price of the Brent crude oil benchmark went up by 2.3% to $85.18 per barrel, which is a 10% increase in total. The price of US crude oil benchmark also saw an increase of 2.5% to $80.15 per barrel. In the MCX, crude oil for July delivery increased by ₹282 (3.83%) to ₹7,642 per barrel, and 15,479 lots were traded. Similarly, the August contract rose by ₹240 (or 3.25%) to ₹7,634 per barrel, with 7,739 lots traded.

Although crude prices remain below the peak of $120 per barrel seen during the West Asia conflict, the escalating standoff between the US and Iran over control of the Strait of Hormuz has heightened uncertainty regarding future crude supplies. US President Donald Trump accused Iran of reimposing a blockade on the Strait of Hormuz, leading to intensified US actions against Iran. Amidst this geopolitical tension, US stock futures showed a mixed trend. Amid ongoing tensions in West Asia, oil tankers are unable to transport crude oil to customers via the Persian Gulf, causing a rise in global crude oil prices.

The impact was also visible in Asian markets on Tuesday; Tokyo's Nikkei rose 225 points (or 0.7%) to reach 67,743.50. Shares of SoftBank Group climbed 2.3%. South Korea's Kospi index rose 0.7% to 6,856.83. The Shanghai Composite index closed 1.1% higher at 3,958.54. China's exports grew by 27% in June, driven by strong demand for computer chips used in artificial intelligence. Hong Kong's Hang Seng rose 0.3% to 24,301.71, while Australia's S&P/ASX 200 index fell less than 0.1% to close at 8,804.70. On Monday, Wall Street saw the S&P 500 fall 0.8%, the Dow Jones Industrial Average drop 0.3%, and the Nasdaq Composite decline 1.6%. Chip stocks fell; Micron Technology dropped 4.4%, and Nvidia fell 3.5%-the latter acting as the biggest drag on the S&P 500.

Higher oil prices could fuel inflation, potentially forcing the Federal Reserve and other central banks to raise interest rates. While high rates can curb inflation, they also slow down the economy, affecting the value of various types of investments. On Tuesday, Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Wells Fargo are releasing their quarterly results. Analysts estimate that the overall growth of companies in the S&P 500 index will be 23.6%.

Prices of oil in the international market have risen due to tensions between the United States and Iran. Crude prices were higher during early trade on Tuesday, as tensions in West Asia increased. There was a mixed reaction from the Asian stocks; the stocks in Tokyo and Seoul moved up following the initial fall.

On Tuesday, the price of the Brent crude oil benchmark went up by 2.3% to $85.18 per barrel, which is a 10% increase in total. The price of US crude oil benchmark also saw an increase of 2.5% to $80.15 per barrel. In the MCX, crude oil for July delivery increased by ₹282 (3.83%) to ₹7,642 per barrel, and 15,479 lots were traded. Similarly, the August contract rose by ₹240 (or 3.25%) to ₹7,634 per barrel, with 7,739 lots traded.

Although crude prices remain below the peak of $120 per barrel seen during the West Asia conflict, the escalating standoff between the US and Iran over control of the Strait of Hormuz has heightened uncertainty regarding future crude supplies. US President Donald Trump accused Iran of reimposing a blockade on the Strait of Hormuz, leading to intensified US actions against Iran. Amidst this geopolitical tension, US stock futures showed a mixed trend. Amid ongoing tensions in West Asia, oil tankers are unable to transport crude oil to customers via the Persian Gulf, causing a rise in global crude oil prices.

The impact was also visible in Asian markets on Tuesday; Tokyo's Nikkei rose 225 points (or 0.7%) to reach 67,743.50. Shares of SoftBank Group climbed 2.3%. South Korea's Kospi index rose 0.7% to 6,856.83. The Shanghai Composite index closed 1.1% higher at 3,958.54. China's exports grew by 27% in June, driven by strong demand for computer chips used in artificial intelligence. Hong Kong's Hang Seng rose 0.3% to 24,301.71, while Australia's S&P/ASX 200 index fell less than 0.1% to close at 8,804.70. On Monday, Wall Street saw the S&P 500 fall 0.8%, the Dow Jones Industrial Average drop 0.3%, and the Nasdaq Composite decline 1.6%. Chip stocks fell; Micron Technology dropped 4.4%, and Nvidia fell 3.5%-the latter acting as the biggest drag on the S&P 500.

Higher oil prices could fuel inflation, potentially forcing the Federal Reserve and other central banks to raise interest rates. While high rates can curb inflation, they also slow down the economy, affecting the value of various types of investments. On Tuesday, Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Wells Fargo are releasing their quarterly results. Analysts estimate that the overall growth of companies in the S&P 500 index will be 23.6%.