Global crude oil prices climbed sharply on Thursday as tensions in the Middle East intensified, raising concerns about potential disruptions to energy supplies.
Amid the escalating conflict involving Iran, disruptions to shipping through the strategic Strait of Hormuz pushed oil prices up by more than 2 per cent.
During early trade, the April contract of Brent crude on the Intercontinental Exchange rose 2.43 per cent to $83.26 per barrel.
Meanwhile, the April contract of West Texas Intermediate on the New York Mercantile Exchange increased 2.63 per cent to $76.63 per barrel.
A projectile struck a container vessel passing through the Strait of Hormuz, damaging the ship and heightening fears of disruptions along one of the world’s most critical oil transit routes.
The Strait of Hormuz acts as a key corridor linking Gulf oil producers with global markets, and any disruption can significantly affect global supply and prices.
Rising crude prices could also impact India, which imports over 85 per cent of its oil needs.
Estimates suggest that a $1 per barrel increase sustained for a year could raise India’s import bill by about ₹16,000 crore.
Around half of India’s crude imports come from Middle Eastern countries, with many shipments passing through the Strait of Hormuz.
Despite tensions, government sources say India remains relatively comfortable, with reserves of about 25 days of crude oil and petroleum products, including supplies in transit.
India has also strengthened energy security by diversifying imports from regions such as Africa, Russia, and the United States, reducing reliance on Gulf suppliers.
The country spent $137 billion on crude oil imports in the financial year ending March 31, 2025. Between April 2025 and January 2026, India imported 206.3 million tonnes of crude, spending about $100.4 billion.
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