Crude oil prices remained elevated as geopolitical tensions in West Asia continued to raise concerns over global energy supplies. Brent crude was at USD 107.01 a barrel, up 9.66 per cent over the past week, while US West Texas Intermediate (WTI) crude stood at USD 102.93 a barrel, gaining 10.95 per cent in the same period.
The rise in oil prices comes as US President Donald Trump reiterated that Iran wants to reach a deal with Washington and said oil prices could fall sharply once the military conflict with Iran ends. The developments come at a time when India is also facing rising inflation pressures, with wholesale price inflation climbing to 9.92 per cent in August.
Trump says oil could fall sharply after Iran conflict
Trump said Iran wants to reach an agreement with the US “quickly and badly” and that Washington is considering whether to engage in negotiations.
He also said oil prices would “drop like a rock” once the military conflict with Iran is over. Trump said the current increase in prices was temporary and attributed broader price increases in the US to the previous administration.
His comments come as crude prices have moved sharply higher over the past week. Brent crude has gained nearly 10 per cent, while WTI has risen nearly 11 per cent, reflecting continued concerns over the impact of the West Asia conflict on energy supplies.
Strait of Hormuz remains key for crude supplies
The Strait of Hormuz remains an important factor for the global oil market as a large volume of crude and other energy products moves through the waterway.
Trump said crude oil is continuing to flow through the Strait of Hormuz. He also said the US was protecting international sea lanes and that other countries should reimburse Washington for the cost of providing that protection.
Any disruption to the movement of crude through the Strait of Hormuz could put additional pressure on global oil prices. For oil-importing countries such as India, a prolonged period of high crude prices could increase the cost of imports and put pressure on inflation.
India’s retail inflation rises to 4.82%
The increase in crude prices comes as India’s retail inflation also moved higher in August. Consumer Price Index-based inflation stood at 4.82 per cent in August 2026, according to data released by the Ministry of Statistics and Programme Implementation.
Inflation in rural areas was higher at 5.23 per cent, while urban inflation stood at 4.31 per cent.
Food inflation was also higher, with Consumer Food Price Index inflation at 5.95 per cent in August. The combination of higher food prices and rising global commodity prices adds to the inflation concerns for the Indian economy.
Wholesale inflation nears 10%
The pressure is more visible in wholesale prices. India’s headline Wholesale Price Index inflation rose to 9.92 per cent in August 2026, compared with 9.78 per cent in July and 9.97 per cent in June, according to India Ratings & Research.
Fuel and power inflation increased sharply to 22.93 per cent in August from 20.05 per cent in July. Inflation in manufactured products also rose to 8.37 per cent from 8.29 per cent.
Devendra Pant, Chief Economist at India Ratings & Research, said WPI inflation could rise to 10.2 per cent in September and remain elevated through the rest of the year unless there is a permanent solution to the prolonged West Asia crisis.
Economists have cited higher global commodity prices, adverse base effects and continued pressure from food, fuel and manufactured products as factors that could keep wholesale inflation elevated.
What high crude means for India
India imports a large share of its crude oil requirement, making global oil prices an important factor for the economy. A sustained rise in crude prices can increase the country’s import bill and put pressure on external finances. It can also affect transportation, manufacturing and other sectors through higher energy and input costs.
The current movement in crude prices therefore remains important for India’s inflation outlook. Brent crude above USD 107 a barrel and WTI above USD 102 a barrel have increased the risk of further pressure on wholesale prices.
However, Trump’s comments on a possible agreement with Iran could become an important trigger for crude prices. If tensions ease and energy supplies remain uninterrupted, the risk premium in crude could decline. On the other hand, any further escalation or disruption to oil flows could keep prices elevated.
