Petrol Diesel Price News: Will the opening of the Strait of Hormuz increase oil supply in the world? Can crude oil become cheaper? Will this also affect the prices of petrol and diesel in India? Have America and Iran really agreed to peace?
Hormuz Strait Reopening Impact: A news from the Middle East and America is giving hope to the people troubled by the rising prices of petrol and diesel. US President Donald Trump has claimed that the way for a peace agreement with Iran has been cleared and preparations are being made to reopen the Strait of Hormuz, which is the world’s most important oil supply route. After this announcement by Trump, the biggest question arising is, will crude oil become cheaper? Will its impact be visible on the prices of petrol and diesel in India also? Let us know the answer…
What did Trump announce regarding Hormuz?
Late on Sunday night, Donald Trump wrote on his social media platform, ‘The deal with Iran has been completed. Ships of the world, start your engines and let the oil flow!’ This is being interpreted to mean that the most important sea route, the Strait of Hormuz, can soon be opened.
Why is it important to open the Strait of Hormuz?
About one-fifth (20%) of the crude oil that is sent from one country to another in the world passes through this narrow sea route. When the war broke out on February 28 this year, Iran blocked this route. In return, America also deployed its navy and blockaded Iran’s ports. Now Trump has agreed to remove this blockade immediately.
3 biggest questions after the announcement of opening of Hormuz Strait
Will the prices of petrol and diesel reduce in India?
Experts say that at present it is difficult to give a direct answer. However, the market has definitely received an indication that oil supply may return to normal in the coming time. If this happens, there may be less pressure on crude oil prices. But just one agreement does not make petrol and diesel cheaper immediately. Prices depend on many things, like crude oil prices in the global market, value of the dollar, government taxes, companies’ costs. Global demand and supply. Therefore, there is still hope for relief, but results may take time.
When will the deal to open Hormuz come into effect?
Countries like Pakistan, Qatar and Saudi Arabia have mediated in getting this deal done. According to Pakistan PM Shahbaz Sharif, both the countries will sign the final agreement on this agreement in Switzerland on coming Friday i.e. 19th June. Only after that the Strait of Hormuz will open completely.
Is there any twist or catch in the Iran-America deal?
Iran has said that it is ready for further talks, but first America will have to win the trust. Iran has put forward its 3 main demands. First, America should completely end its military actions and the atmosphere of war. Secondly, all economic and maritime sanctions imposed on Iran should be removed and thirdly, Iran’s funds worth billions of dollars frozen abroad should be released immediately.