New Delhi, March 30 (IANS) Global oil prices surged sharply on Monday amid escalating tensions in West Asia, following the entry of Yemen’s Iran-backed Houthi group into the conflict.

International benchmark Brent crude futures rose as much as 3.66 per cent to an intra-day high of $116.70 per barrel, nearing a fresh 52-week high. US benchmark West Texas Intermediate (WTI) also climbed over 3 per cent to cross $103 per barrel.

The latest spike in crude prices follows weekend missile launches by Houthi forces targeting Israel. The group has warned of continued attacks until strikes on Iran and its allied militias cease, adding a new layer of risk to already strained global energy markets.

Brent prices have surged over 50 per cent in March and are now revisiting early-war highs, despite ongoing diplomatic efforts.

Analysts said crude oil remains the most critical macro variable at this stage.

“Market participants are increasingly pricing in a prolonged supply disruption scenario, with some global estimates indicating a potential spike towards $200 per barrel if tensions persist,” they said.

They added that for an import-dependent economy like India, this poses risks of higher inflation, pressure on corporate margins and a deteriorating current account outlook.

On the global front, equity markets were also under pressure, with US and Asian stocks trading in negative territory.

Wall Street ended lower, with the S&P 500 closing 1.67 per cent down, while the Nasdaq declined about 2 per cent.

In Asia, Japan’s Nikkei plunged nearly 4 per cent, while Hong Kong’s Hang Seng declined over 1 per cent and South Korea’s Kospi slipped almost 3 per cent.

In addition, domestic equity indices -- Sensex and Nifty -- also began the session on a weak note, declining over 1 per cent each in early trade as the West Asia conflict entered its fifth week and widened further.

--IANS

ag/na