New Delhi: The Indian rupee breached a new record low on Wednesday, crossing Rs 92 per dollar as oil prices surged amid escalating geopolitical tensions in the Middle East. 

The domestic currency was trading at Rs 92.38 to the dollar, up 35 paise or 0.38 per cent from the previous session.

Brent crude prices spiked to as much as $85 per barrel in recent days as military tensions between the United States, Israel and Iran intensified, the report further said.

On Wednesday, WTI crude climbed above $75 a barrel, extending a two-day gain of approximately 11 per cent, while Brent traded near $81 a barrel amid shipping disruptions through the Strait of Hormuz, which kept triggering supply chain-related fears.

 The closure of Strait could reportedly disrupt nearly 40 per cent of India’s energy imports.

The currency and fixed income markets were closed on March 3 due to a public holiday on account of Holi.

Analysts urged importers to wait for dips to buy the dollar and closely watch RBI action on the rupee.

The broader bias remains constructive as long as the pair holds above the 90.8–91 support region, they said.

 A sustained hold above 92.20 could trigger further upside toward 92.50–92.80, potentially leading to fresh highs if risk-off flows and oil-driven dollar strength persist, a market participant said.

Bajaj Finserv AMC recently said in a report that markets grappling with steep US tariffs, heightened geopolitical concerns and persistent FPI pushed the rupee to an all-time low despite a supportive domestic environment of steady growth and moderate inflation.

The report said that sentiment improved meaningfully after the India–US trade deal announcements.

Iran's retaliatory strikes on oil and gas facilities have heightened fears of supply disruption, lifting oil prices and stoking inflation worries.  Tehran reportedly targeted oil and gas infrastructure in Saudi Arabia and threatened shipping in the strategic Strait of Hormuz.