The ongoing conflict between Iran and Israel is affecting many countries around the world. Late last night (October 1), Iran fired over 200 missiles at Israel, and Israel has warned Iran of serious consequences. The instability caused by this war has created a major concern about the rising prices of crude oil.
Crude Oil Prices Surge
Crude oil prices were already on the rise, and this conflict has pushed them up even more. Yesterday, the price of crude oil jumped by around 5%, which led to a drop in the U.S. stock market. The price of WTI crude rose by 3.7%, and Brent crude saw an increase of 4-5%.
Why is the War Affecting Crude Prices?
Iran supplies about one-third of the world’s crude oil and is an important member of OPEC (Organization of the Petroleum Exporting Countries). The ongoing war has caused concern among oil suppliers, pushing crude prices higher. Yesterday alone, prices increased by nearly 5%.
Current Crude Oil Prices
As of today, the price of WTI crude is $70.11 per barrel, and Brent crude is priced at $74.84 per barrel. The impact of rising crude prices was also seen in the U.S. stock market, with major tech stocks like Apple and Nvidia closing lower.
See here also : there-was-a-commotion-when-the-delhi-police-detained-sonam-wangchuk-along-with-150-supporters
How Will India Be Affected?
Up until 2018-19, Iran was India’s third-largest oil supplier. However, since June 2019, after the U.S. imposed sanctions on Iran, India stopped importing oil from the country. While India no longer directly imports oil from Iran, it is still likely to be affected by the global tension and disruption in supply chains.
Will Petrol and Diesel Prices in India Decrease?
India is the world’s third-largest importer of oil. The global supply chain disruption caused by the war could lead to a further rise in crude oil prices, making it unlikely that petrol and diesel prices in India will decrease anytime soon.
What Support Does India Have During This Tension?
Even though there is a risk of rising fuel prices, India has a strong support system in place. Since the Russia-Ukraine war, Russia has become India’s top supplier of crude oil, providing about 40% of India’s needs. Iraq follows, supplying around 20% of India’s crude oil. This helps reduce India’s dependence on other sources during times of global tension.
