Crude oil extended its gains to above $82 per barrel on Friday, reaching its highest level in a month, after Kuwait said Iran had attacked a power and water desalination plant. Meanwhile, reports indicated that Iran launched strikes against US targets in Bahrain, Jordan, Kuwait, Oman, Qatar and Syria in retaliation for Washington's latest round of military attacks. The US Central Command said it had completed its sixth consecutive night of strikes against Iran, targeting dozens of military sites. Also, reports indicated that Iran had instructed Houthi forces to prepare to disrupt shipping through the Red Sea if the US targets Iranian power infrastructure. Meanwhile, commercial traffic through the Strait of Hormuz has remained largely limited. Oil prices have risen more than 14% this week as hostilities intensified, raising fears of a broader regional conflict. Early this week, the US reinstated a naval blockade targeting Iranian ports near the Strait of Hormuz.
The Indian rupee hovered around 96.3 per dollar, remaining under pressure after reaching an eight-week low.Meanwhile, the RBI continued intervening in the spot and non-deliverable forward markets to support the currency, though traders said intervention remained relatively measured. The rupee remained under pressure despite a turnaround in foreign portfolio flows, with overseas investors buying about $1.5 billion in Indian equities and $500 million in debt this month, as persistent importer demand for dollars and capital outflows weighed on the currency. However, a softer-than-expected US inflation report, which reduced expectations of imminent Federal Reserve rate hikes and weakened the dollar, helped limit further losses.
