On February 28, the US and Israel launched joint strikes on Iran, and the ripple effects are now being felt right at home. At the centre of it all is global crude, which has been on a steady rise ever since tensions tightened around the crucial Strait of Hormuz, a narrow yet high-stakes passage that carries around 20% of the world’s energy supplies.
The crisis, now stretching beyond several weeks, has kept this strategically vital route under pressure, disrupting energy flows across global markets.
With supplies under strain, oil prices have surged past the $100 per barrel mark, a sharp jump from around $70 before the conflict began. Brent crude, holding above $111 per barrel, is now triggering a chain reaction across fuel prices, markets, currencies and trade flows.
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One spark, many ripples.
The impact is not confined to the region, with India among the economies feeling the heat. It is now entering household budgets, petrol pump visits, financial planning, and everyday spending, while investors continue to watch their portfolios stay in deep red.
Fuels get costlier
Let’s begin with the most visible change, fuel getting costlier. On Tuesday, petrol and diesel prices saw another hike, rising by around 90 paise. This comes after the government had increased petrol and diesel prices last Friday, by Rs 3 per litre. The price rises were introduced as higher import costs finally caught up after weeks of absorbing the global oil shock.
Until now, India had kept fuel prices unchanged for several weeks despite the global oil shock, choosing to absorb the impact.
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