Why did crude oil jump 35% this week?

Supply disruptions and conflict risk around the Strait of Hormuz tightened near-term availability, lifting risk premia. Futures rallied as traders priced potential outages, costlier shipping, and insurance. With inventories not ample, prices moved quickly. WTI settled at $90.90 and Brent at $92.69, marking the biggest weekly gain in decades for futures markets.

How could this affect India fuel inflation and CPI?

If high prices persist, oil marketing companies will likely pass through costs, first via LPG and then diesel and petrol. Transport and farm inputs get pricier, lifting core components. A weaker rupee could add to the squeeze. The longer crude stays elevated, the larger and more broad the CPI impact becomes.

What is the Strait of Hormuz and why does it matter for India?

It is a narrow shipping route critical for energy flows. Roughly half of India’s crude oil and most LPG and LNG imports transit this chokepoint. Disruptions can raise freight, insurance, and delivery times. Even without outright shortages, India’s landed costs rise, pressuring inflation and the trade balance.

What should Indian investors watch next week?

Focus on OMC retail price changes, India import tenders, and any signs of force majeure. Track tanker rates, insurance premia, and refinery run guidance. On pricing, watch the futures curve, Brent-WTI spread, and timespreads. RBI commentary on inflation and liquidity will also guide rate expectations and market sentiment.

Global Market Insights

Crude Oil Today, March 7: WTI +35% Week Risks India Fuel Inflation

ByDanny Kontos March 7, 2026

Crude oil surged this week, with WTI price settling at $90.90 after a 35% weekly jump and Brent at $92.69. The shock stems from supply outages linked to the Strait of Hormuz. For India, where roughly half of crude and most LPG and LNG imports pass through this route, the risk is clear: a larger import bill, pressure on the rupee, and higher near-term inflation. We break down price scenarios, inflation channels, and practical portfolio cues for Indian investors.