The recent conflict between Israel and Iran is causing concern in global oil markets. On Saturday, the price of Brent crude oil jumped by over $6, reaching a five-month high of $78 per barrel. This sudden increase came after Israel launched airstrikes on Iranian nuclear sites, followed by Iran’s counterattack on Tel Aviv.
Oil prices are rising because of fears that supply routes in West Asia may be affected. Even though India doesn’t buy much oil directly from Iran, it imports about 80% of its total oil needs. Any trouble in the region could hurt India’s oil supply and raise fuel prices.
A major concern is the Strait of Hormuz, a narrow but very important waterway between Iran and the Arabian Peninsula. Nearly 20% of the world’s LNG and a large share of crude oil passes through this area. If Iran blocks this route or shipping is delayed, oil supplies from countries like Iraq, Saudi Arabia, and the UAE—key suppliers to India—could be disrupted.
Experts from S&P Global say the oil market usually reacts to such news quickly, but prices may come down again if the conflict does not grow and oil shipments are not disturbed.
Still, freight and shipping costs may increase if the conflict continues or worsens. This can affect trade and raise the cost of goods in India.
However, analysts from Emkay Global believe India’s oil companies are still in a good position. They say strong profit margins and stable global oil production may help reduce the overall impact.
For now, markets are watching the situation closely. Any new move in the conflict could further change oil prices and global trade.
Also Read: Netanyahu Issues Stern Warning to Iran Amid Rising Tensions
