Across the world, the shutdown of theStrait of Hormuz, considered a critical oil chokepoint, amid the US-Israel-Iran war has led to fears over economic and energy security risks.
Should India, too, be majorly worried? Sources tell News18 that India has no major concerns at the moment.
Oil prices spiked near $120 per barrel before falling back Monday as the Iran war intensified, threatening production and shipping in the Middle East and pummelling financial markets. The price for a barrel of Brent crude, the international standard, surged to $119.50 per barrel early in the day but later was trading at $107.80 per barrel.
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Oil prices have surged as the war, now in its second week, ensnares countries and places that are critical to the production and movement of oil and gas from the Persian Gulf.
Prices moderated after the Financial Times reported that some members of the Group of Seven industrial nations were considering releases of strategic oil reserves to alleviate pressure on the markets. The unconfirmed report cited unnamed people familiar with the talks. On Saturday, President Donald Trump downplayed the idea of turning to America’s Strategic Petroleum Reserve, saying US supplies were ample and prices would soon fall.
Roughly 15 million barrels of crude oil — about 20% of the world’s oil — typically are shipped every day through the Strait of Hormuz, according to independent research firm Rystad Energy.The threat of Iranian missile and drone attacks has all but stopped tankers from traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran.
Iraq, Kuwait and the UAE have cut their oil production as storage tanks fill due to the reduced ability to export crude. Iran, Israel and the United States also have attacked oil and gas facilities since the war started, exacerbating supply concerns.
The surge in costs for oil and natural gas is pushing fuelpriceshigher, cascading through other industries and jolting Asian economies that are especially vulnerable due to the region’s heavy reliance on imports from the Middle East. The last time Brent and US crude futures traded near the current level was in 2022, after Russia invaded Ukraine. Higher energy costs push inflation higher, straining household budgets and denting the consumer spending that is a main driver of many big economies.
India imports approximately 88% of its crude oil, with roughly 50% to 60% of these imports passing through the Strait of Hormuz from suppliers like Iraq, Saudi Arabia, the UAE, and Kuwait.
Source: World News in news18.com, World Latest News, World News
