Global market shaken by Middle East crisis: Crude oil crosses $83, uneasiness increases due to closure of Strait of Hormuz

Crude Oil Price Hike Middle East Tensions: The increasing geopolitical tension in the Middle East has once again increased the concerns of the global energy market. Crude oil prices jumped more than 2 percent on Thursday after Iran announced the closure of the strategically important Strait of Hormuz. The fear of supply chain disruption has pushed crude prices above $83 per barrel in the international market.

Business opened briskly today

The impact on global benchmarks was clearly visible in early morning trading. Brent crude futures contract for April on the Intercontinental Exchange (ICE) was trading at $ 83.26 per barrel, up 2.43 percent. At the same time, West Texas Intermediate (WTI) on the American market New York Mercantile Exchange (NYMEX) also did not lag behind. Its April contract rose 2.63 percent to $ 76.63 per barrel.

Why are prices increasing?

The main reason for this latest surge in prices is the increased tension in the Strait of Hormuz. According to reports, a container ship passing through this route was attacked by a projectile, causing heavy damage to the ship. Iran’s decision to close this route is a major blow to global oil supply, because a large part of the world’s total oil trade passes through this narrow sea route.

The burden on India may increase by Rs 16,000 crore

India imports more than 85 percent of its crude oil needs. Experts believe that every $1 increase in oil prices can increase India’s annual import bill by about Rs 16,000 crore. India had spent $137 billion on oil imports in the financial year 2025, whereas in the first ten months of the current financial year itself, this figure has crossed $100 billion.

Will there be an oil crisis in India?

Government sources have given relief news at the moment. According to government data, India is currently on ‘wait and watch’ Is in good condition and is relatively safe.

• oil reserves: The country currently has about 25 days of crude oil reserves available.
• Petroleum products: There is also about 25 days’ stock of petroleum products, which includes ships currently headed to Indian ports.
• LPG and LNG: The situation regarding gas supply is also said to be under control.

Increased dependence on Russia and America

Earlier, India used to import 50 percent of its oil needs from the Middle East, which came via Hormuz. However, India has changed its strategy in the last few years. To strengthen energy security, imports from Russia, Africa and America have now been increased. Because of this diversity in sources, the impact of the closure of the Strait of Hormuz is now expected to be smaller than previously thought.

Also read: Share market regained its glory, huge jump in Sensex and Nifty due to the news of secret talks between Iran and America.

If the clouds of war in the Middle East deepen further, then its direct impact can be seen on the prices of petrol and diesel and domestic inflation in the coming days. At present, India seems ready to face this crisis through its strategic reserves and alternative sources, but stability in global prices is very important for the country’s economy.