Oil Prices Mixed: Hormuz Fears Offset by India Waiver

Attacks launched by the US and Israel against Iran, followed by Iran's retaliatory strikes targeting energy facilities, have significantly disrupted traffic through the critical Strait of Hormuz. This escalation has fueled fears of supply disruptions, pushing international benchmark Brent crude up by over $10 a barrel and US benchmark West Texas Intermediate (WTI) by more than $15 since late February.

On Friday, Brent traded at $83.56, up 0.4%, while WTI rose 0.9% to $79.15. However, these gains were capped after the US granted Indian refiners a temporary 30-day waiver to purchase Russian crude. US Treasury Secretary Scott Bessent clarified this measure was designed to maintain global oil supply and was a short-term step, specifically applying to cargoes already stranded at sea, thus limiting financial benefit to Russia.

This move comes against the backdrop of existing US sanctions on Russia's oil trade, imposed after the 2022 Ukraine invasion. Market sentiment was further moderated by reports of potential additional US measures, including those affecting oil futures, aimed at curbing price increases, indicating ongoing governmental efforts to stabilize the energy market amidst global instability.