Petrol, diesel price in India to go up? Crude oil rates jump record high, fuel prices in India may…
The global economy is on edge. As de-escalation efforts US-Iran war have failed, the US Navy is now preparing to impose a blockade on the Strait of Hormuz. This effectively means that Iran will be unable to export its crude oil through this critical route. The development has sent shockwaves across global markets, triggering a sharp surge in crude oil prices. Prices have now climbed back to levels last seen before the ceasefire.
Blockade at Hormuz
Talks between the United States and Iran have failed. Following this, the US Navy is preparing to impose a blockade on the Strait of Hormuz. This means Iran will not be able to export its oil through this route. As a result, crude oil prices have surged sharply today, returning to levels seen before the ceasefire.
Crude oil prices today
Currently, Brent crude is trading at USD 101.6 per barrel, up 6.72%, while WTI crude has climbed 7.92% to USD 104.2 per barrel. In the previous session, both benchmarks had declined. On Friday, Brent closed 0.75% lower, while WTI fell 1.33%. Following the collapse of talks with Iran, US President Donald Trump said on Sunday that the US Navy would begin the blockade of the Strait of Hormuz, which has also put the two-week ceasefire between the two nations at risk. He added that oil and gas prices could either fall or rise slightly ahead of the midterm elections scheduled in November in the United States.
What experts say
Experts believe the oil market has returned to a pre-ceasefire scenario, with the key difference being the US move to curb Iran’s oil exports. With the blockade likely to restrict tanker movement through the Strait of Hormuz, not only Iran but also Gulf nations may face disruptions in exporting oil. This is expected to further tighten global supply and is being seen as one of the biggest oil crises in the world.
Impact on petrol and diesel prices in India
Although the government is taking several measures to keep petrol and diesel prices under control, including the recent excise cut. However, experts believe that if crude oil prices remain in the range of USD 105 to 110 per barrel for several weeks, mounting pressure and rising losses for oil marketing companies could eventually force the government to increase petrol and diesel prices further.
