Israel’s aerial war against Iran has intensified. After Israel attacked Lebanon, Iran retaliated by targeting energy installations and infrastructure in Gulf countries, as well as oil tankers in the Strait of Hormuz. The Strait of Hormuz has now been closed. With the escalation of military conflict involving Iran, the suspension of traffic through the Strait of Hormuz has raised serious concerns about disruptions in oil and natural gas supplies from West Asia to other countries. As a result, global fuel prices have risen as early as the third day of the conflict. International crude oil prices have increased by nearly nine per cent. The Strait of Hormuz is a narrow passage connecting the Persian Gulf and the Gulf of Oman. Around 20 per cent of the world’s oil trade passes through this route, with nearly 15 million barrels transported daily. About 40 per cent of India’s oil imports pass through the Strait of Hormuz. Therefore, this crisis is likely to affect India as well. In the coming days, fuel prices are expected to rise further, leading to increased inflationary pressure on consumers.
