North India Statesman
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News India Live, Digital Desk: Crude Oil Pries: In the Middle East, the impact of the increasing tension between Iran and Israel has started appearing on the markets of the whole world. Due to the deepening of war between the two countries, there has been a huge jump in the prices of crude oil in the international market. The price of Brent crude oil has also crossed $ 91 per barrel, which is the highest level of the last several months.
The biggest reason for this speed is the reply to Iran after the attack on the Iranian embassy in Syria. Iran, which is the third largest producer of OPEC (organization of Petroleum Exporting countries), has said that it will definitely take revenge on Israel. This threat has created fear in the market that if this stress turns into a complete war, the supply of oil may be severely affected.
Hormuz Strait Crisis
The biggest concern of analysts is about the Strait of Hormuz. This is a narrow sea route, through which about 20% of the world’s oil passes. If Iran closes this route, the movement of oil tankers will stop, which will create a huge crisis in global oil supply. Due to this fear, investors and oil companies are shopping in panic, causing prices to rise continuously.
What will be the effect on India?
Whenever crude oil is expensive in the international market, it directly affects India. India imports more than 85% of its needs. If the prices remain high, then the prices of petrol and diesel in India may also increase, which will pose a risk of inflation and increasing. Currently, the eyes of the whole world are on the next step of Iran and Israel.
