Crude oil futures extended gains for the sixth consecutive session, rising to Rs 8,592 per barrel as renewed hostilities between the United States and Iran stoked fears of supply disruptions. The uptick reflected concerns over potential impacts on regional production and tanker traffic, which pushed global oil prices higher. Market attention focused on geopolitical developments that analysts said were the primary driver of the move.

On the Multi Commodity Exchange, the September contract rose by Rs 56, or 0.66 per cent, to Rs 8,592 per barrel, while the October contract gained Rs 56, or 0.67 per cent, to Rs 8,391 per barrel. In international markets, Brent crude for November delivery rose by USD 2.36, or 2.5 per cent, to USD 97.01 per barrel on the Intercontinental Exchange. West Texas Intermediate for the October contract traded higher at USD 90.73 per barrel on the New York Mercantile Exchange.

Kotak Securities' assistant vice president for commodity research, Kaynat Chainwala, said the rally accelerated after Washington and Tehran resumed direct strikes and noted that US action on Iranian targets was followed by further retaliatory moves. The analyst added that Iran had expanded its response by striking Jordan, Bahrain and Kuwait, all of which host US military infrastructure, raising concerns that the conflict could draw in other Gulf states. Such developments, she observed, heightened the risk to supplies and added to volatility in crude markets.

With no signs of de-escalation, market participants retained an upward bias, although stretched positions left prices vulnerable to a sharp reversal should a credible ceasefire emerge. Analysts said geopolitical risk had returned to the forefront as the main determinant of crude direction, with traders weighing the threat to supplies against the prospect of a sudden price fall if diplomatic efforts succeeded. Attention remained on further military and diplomatic developments that could quickly alter market sentiment.