NewKerala.com

Strait of Hormuz Crisis: Oil Prices Surge Amid Iran Ship Seizures

Traffic through the Strait of Hormuz has halted after Iran seized two ships, including one bound for India, causing oil prices to firm up above $103 per barrel. India, which sources 50% of its crude and most LPG from the Persian Gulf, is diversifying imports and increasing domestic LPG production. The Indian Navy safely escorted the crude oil tanker Desh Garima to Mumbai, while the government reduced excise duty on petrol and diesel by ₹10 per litre to shield consumers. Iran's negotiator cited US and Israeli ceasefire violations as the reason for the strait's closure, while the US extended its ceasefire with Iran indefinitely.

Key Points: Hormuz Crisis: Oil Prices Surge, India Scrambles

  • Iran seizes two ships in Strait of Hormuz, halting traffic
  • Oil prices rise above $103 per barrel
  • India diversifies crude imports, cuts excise duty on fuel
  • Indian Navy escorts tanker Desh Garima safely to Mumbai
3 min read

Ship movement via Hormuz halts, global oil prices firm up

Strait of Hormuz traffic halts after Iran seizes ships, including one bound for India. Oil prices rise above $103. India diversifies imports, cuts fuel excise.

"It is not possible for the Strait of Hormuz to be opened due to the blatant violations of the ceasefire by the US and Israel. - Mohammad Bagher Ghalibaf"

New Delhi, April 23

Traffic through the Strait of Hormuz has come to a standstill after Iran seized two ships, including one bound for Kandla port in Gujarat, which has increased uncertainty over the movement of oil and gas as 20 per cent of the world's energy exports transit through the waterway.

As a result, oil prices firmed up on Thursday with the benchmark Brent crude trading at over $103 a barrel.

The bulk of India's LPG imports and 50 per cent of crude imports are sourced from the Persian Gulf which have been impacted due to the closure of the Strait of Hormuz, even as the government is diversifying imports of crude and increasing domestic production of LPG to enhance energy supplies. Some consumers are also switching to alternative fuels such as natural gas, coal and electric cooktops.

Iran's chief negotiator in talks with the US, Mohammad Bagher Ghalibaf, said it is "not possible" for the Strait of Hormuz to be opened due to "the blatant violations of the ceasefire" by the US and Israel.

In a post on X on Wednesday, Ghalibaf, said the "violations include the US naval blockade of Iranian ports and warmongering by Israel on all fronts."

Iran remains open to negotiations, said Iran President Masoud Pezeshkian, but he added, "breach of commitments, blockade and threats are main obstacles to genuine negotiations"

Meanwhile, Indian-flagged crude oil tanker Desh Garima safely arrived in Mumbai on Wednesday. It crossed the Strait of Hormuz earlier, carrying 31 Indian crew members and over 97,000 metric tonnes of crude oil amid high tensions in the region. The ship was escorted by the Indian Navy. The Government has also refuted social media reports that the captain of the Indian Sanmar Herald paid a toll to cross the Strait earlier.

While the Middle East crisis has led to an abnormal increase in crude prices, the Government of India has reduced excise duty on petrol and diesel by ₹10 per litre so that consumers do not have to pay a higher price at the pumps. Retail fuel outlets across the country are operating normally and there has been no increase in the prices of petrol

US President Donald Trump has announced an extension to the US-Iran ceasefire that was due to expire on Wednesday even as the American blockade of Iranian ports continues.

White House Press Secretary, Karoline Leavitt, clarified that the ceasefire extension is open-ended, and has no new deadline. She further stated that Trump is satisfied with the ongoing US naval blockade against Iran, and Tehran is seen to be in a very weak position. She also told journalists that President Trump will decide when the war would end based on the best interests of the United States.

- IANS

Share this article:

Reader Comments

S
Sarah B
The US-Israel alliance seems to be provoking Iran deliberately. Blockade + warmongering = stalemate. Meanwhile Indian families will suffer because of higher LPG and fuel costs. Reduce excise duty? That's a band-aid solution. Focus on increasing domestic production, government should think long term.
P
Priya S
Hats off to Indian Navy for safely escorting Desh Garima! 🇮🇳 But honestly, the whole situation is scary. 50% of our crude from Persian Gulf? That's a massive vulnerability. The govt should fast-track deals with Russia, Africa, and Latin America for oil supplies. Also, why is the US dictating terms when India's interests are at stake? We need neutral diplomacy.
R
Ravi K
Iran says 'blatant violations' and US says 'Iran weak'. Both sides playing games while global economy suffers. India should push for a UN-mediated dialogue. Our ship was stopped, our crew safe, but for how long? This is not just about oil, it's about national security. Time to build strategic reserves for emergencies.
J
James A
As an expat living in India, I appreciate the government keeping fuel prices stable. But this crisis shows how fragile global supply chains are. Electric cooktops and natural gas are good alternatives, but infrastructure needs to scale up fast. The West's geopolitical games always hit developing countries hardest.
N
Neha E
Excise duty cut by ₹10? That's okay but not enough when global crude is $103/barrel. The real problem is that India is still heavily dependent on oil imports. We have so much potential in solar and wind but implementation is slow. Also, this

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50