Oil Crisis: On one hand, the movement of oil tankers in the Strait of Hormuz is already badly affected and now Saudi Arabia has temporarily closed its very important East-West oil pipeline, while on the third hand, Yemen's Houthi rebels are strengthening their hold in the very strategic area of Bab al-Mandeb. This means that these three important routes of oil supply are under threat simultaneously.
Read :- America responded to the attack on its warship, attacked and sank the Iranian oil tanker in Oman.
First of all, let's talk about Saudi's East-West Pipeline. This approximately 1200 kilometer long pipeline was a major alternative to Hormuz for Saudi Arabia. Through this, oil can be sent out of the Persian Gulf via the Red Sea. But after the drone attacks from Iraq, Saudi has closed it as a precautionary measure. According to reports, around 40 to 50 lakh barrels of oil were being sent daily through this pipeline in recent months.
Now the third front is raising even more concerns. Yemen's Houthi rebels have reached the strategic Perim island at the mouth of the Red Sea. This area is very close to the Bab al-Mandeb Strait. If the sea route here becomes unsafe, it could have a major impact on oil and freight transportation between Asia and Europe. And this entire crisis may affect India also. India fulfills a major part of its needs through import of crude oil and energy resources. If oil supplies from the Gulf are disrupted or ships have to take longer alternative routes, transportation costs could increase. This may have an impact on petrol-diesel, inflation and the country's import bill in the future. There are already reports of pressure on LPG supply.
And the biggest threat is the price of oil. According to reports, amidst this entire crisis, international oil prices have reached above $100 per barrel. If Hormuz, Saudi's alternative pipeline route and Bab al-Mandeb remain under pressure for a long time, the world may face a major supply crisis. That is, the matter is not just about the war in the Middle East, it is about the oil on which the entire world economy runs. Now the big question is – if these three oil routes remain affected for a long time, will there be chaos of expensive oil and inflation again in the world and to what extent will India be able to save itself from this new oil crisis?