Brent crude crosses $117 a barrel; Monday pressure on Indian stock markets feared

Crude oil prices have surged again across the world. On Friday, October 23, Brent crude crossed $117 a barrel in the international market, sharply raising the risk of inflation worldwide.

In Friday's trade, Brent crude jumped 3.5 per cent to $117.14 a barrel. It is the first time since April that oil has touched this level. According to analysts, crude prices have risen by about 20 per cent since the start of September. Concern is also being voiced that prices could climb further.

A major reason for the rise is growing tension between the US and Iran and the fear of war. There are fears of escalating military action against Iran by the US and Israel, along with worry over falling global oil reserves. Both factors have supported prices. Analysts believe Brent crude could go as high as $120 a barrel if the US-Iran confrontation worsens.

Tension around the Strait of Hormuz is another key factor. The sea route is vital to the world's oil trade. Iran has stepped up attacks this week on oil tankers passing through it. According to Iranian state television, seven oil tankers were attacked on Thursday or targeted with sea mines. This has raised fears of disruption to oil supplies.

The effect may be seen on the Indian stock market on Monday. Rising crude prices put pressure on the market and increase selling. However, the market's actual direction will also depend on other global cues and investors' reaction. In the coming sessions, investors will closely watch the situation in West Asia and oil prices.

India imports a large share of its crude oil needs, so it will be directly affected. Costlier oil may raise the country's import bill. This will increase pressure on the rupee and weaken it again. It also raises the risk of a surge in inflation and higher costs for companies.