On Friday, international oil prices extended their gains after attacks on two oil tankers in the Gulf of Oman. The attack has raised concerns of reduced supply via one of the key shipping routes in the world and escalations in tensions between Iran and the US.
The attacks took place near Iran and the Strait of Hormuz on Thursday. It is the second time in a month that oil tankers have been attacked on this shipping route.
Oil prices surged as much as 4.5 percent on Thursday. International benchmark Brent crude futures rose 50 cents or 0.8 percent on Friday to $61.81 a barrel, having closed significantly higher by 2.2 percent on Thursday.
Petrol and diesel prices in India, that are based on the 15-day average of the international oil prices and forex, may rise, if the tensions do not ease soon.
The oil prices rose on Thursday after the United States was quick to blame Iran for the attacks, while Tehran denied the allegations.
The US military released a video and said that the video showed an Iranian navy boat removing an unexploded mine that was attached to the hull of the Japanese-owned chemical tanker Kokura Courageous, one of two tankers attacked on Thursday, according to a CNN report. The American Secretary of State Mike Pompeo said that Iran was blamed for attacking the Kokura Courageous and another ship, Norwegian-owned Front Altair, based on the assessment of its military's intelligence.
Relations between the US and Iran have been tense since American President Trump withdrew the 2015 multinational nuclear pact with the Middle Eastern oil producing country and reimposed sanction on its exports, hurting its crude exports greatly.
Analysts now await to see what action may be taken by the US military in the region.