Oil prices climb nearly 4 pc amid escalating West Asia conflict
New Delhi, March 16
Global oil prices rose on Monday after the United States launched strikes on military assets on Kharg Island over the weekend, escalating tensions in the Persian Gulf as the conflict entered its third week.
At around 9:45 am, Crude oil futures -- specifically the US benchmark West Texas Intermediate (WTI) -- surged by 3.77 per cent to $102.44, while Brent crude -- the international benchmark -- traded at $104.79, up 1.59 per cent from the previous close.
The surge in oil prices followed retaliatory attacks by Iran on Israel and several Arab states after US strikes targeted military facilities on Kharg Island, which handles the bulk of Iran's crude shipments.
US President Donald Trump warned that Iran's energy infrastructure on the island -- responsible for roughly 90 per cent of the country's oil exports -- could face further attacks if Tehran disrupts shipping through the Strait of Hormuz.
Trump said he was "demanding" that other nations help secure the key maritime passage that connects the oil and gas supplies of the Persian Gulf to global markets.
Washington has reportedly urged major oil-importing partners such as China and Japan to deploy naval vessels to the Strait to ensure the safe movement of tankers. Around one-fifth of global oil shipments and significant volumes of seaborne liquefied natural gas pass through the waterway.
The US has also ordered the Navy's Fifth Fleet to escort commercial vessels in the region in an effort to deter potential Iranian attacks.
The strike on Kharg Island marks a further escalation in the conflict, which, according to the International Energy Agency (IEA), has already triggered the largest supply disruption in the history of the global oil market. Shipping traffic through the Strait of Hormuz has largely stalled since hostilities intensified.
Meanwhile, the United Arab Emirates resumed loading operations at the key export hub of Port of Fujairah on Sunday, a day after a drone strike temporarily halted shipments from the country's primary export route while the strait remained blocked.
Brent crude surged about 11 per cent last week, touching a high of $119.50 per barrel -- levels last seen following Russia's invasion of Ukraine -- before settling just above $103 per barrel.
— IANS
Reader Comments
Living in Mumbai, I see the immediate impact. Auto and taxi fares will go up within days. It's a domino effect on the price of everything. Really hope for a diplomatic solution soon. 🙏
While the immediate price rise is worrying, this is a stark reminder. We need to double down on our renewable energy goals and reduce this import dependency. Solar, wind, electric vehicles - the push needs to be stronger.
The Strait of Hormuz is a global chokepoint. 20% of world oil! It's scary how a conflict far away can disrupt lives here. Our foreign policy has to be very careful and balanced in this situation.
Respectfully, I think the article focuses a lot on the US/Iran angle. What about the impact on Indian sailors and shipping companies? Many Indian vessels operate in that region. Their safety is paramount.
Inflation is already high. Diesel price increase means costlier transport for goods -> costlier vegetables and essentials. The common man is always at the receiving end of these geopolitical games. 😔
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