Iran has again closed the Strait of Hormuz, accusing America and Israel of breaking the deal. Know what effect it will have on India? Will petrol and LPG become expensive again?
Strait of Hormuz Impact on India: There is such a news coming from the Middle East, which has increased the heartbeats of the entire world. Iran has once again announced the closure of the Strait of Hormuz, considered the world’s most important maritime lifeline. Angered by the Israeli attack on Lebanon, Iran has taken this step. However, America claims that it has no evidence that Hormuz is closed. In such a situation, the question is arising that if the situation worsens again, what will be its impact on India? Can petrol, diesel and LPG become expensive again? Let us know the whole matter and how much impact it can have on India…
Why did Iran close the Strait of Hormuz again?
Iran’s military command and officials associated with the Revolutionary Guard claimed that the US and Israel did not follow the terms of the ceasefire agreement. Iran alleges that conflict is continuing in Lebanon and Israel is carrying out attacks, hence it has decided to take retaliatory measures. Iran has also warned ships to avoid coming near this area. It has also been indicated that further stringent steps can be taken.
What did America say on the re-closure of Hormuz?
The US Army’s Central Command (CENTCOM) has challenged Iran’s claim. America says that the movement of ships continues through the Strait of Hormuz and their 55 commercial ships have left safely and have taken a large quantity of oil. US Vice President JD Vance also said that oil tankers are running continuously and the route is not completely closed.
Why is the Strait of Hormuz so important?
The Strait of Hormuz is the sea route in West Asia through which one-third of the world’s oil and gas passes. The supply of millions of barrels of oil coming from Gulf countries reaches the world through this route. This is the reason why whenever tension increases in this region, the heartbeats of the energy market around the world increase. This route was closed due to the ongoing war since last February, which had increased the shortage of oil and gas across the world, but it was expected to open due to the peace deal with America, meanwhile Iran has again closed this route.
What will be the impact on India? Will petrol and LPG become costlier?
Petrol-diesel prices
India imports most of its crude oil needs from abroad. Shipping cost increases due to road closure or increased tension. If the prices of crude oil increase in the international market, then the prices of petrol and diesel may also increase in India. However, the final decision will depend on many things. Like how many days does the tension last, how much is the Strait of Hormuz actually affected, what is the reaction of the oil producing countries, how much is the availability of oil in the global market.
Effect on LPG (LPG)
Earlier, India used to source 90% of its LPG from West Asia, but this time due to the ongoing war in the Middle East and the closure of Hormuz, India changed its strategy and started buying gas and energy products from many countries including America, Argentina, France, Netherlands, Chile. Because of this, there will be no shortage of gas in the country. Since gas is coming from very distant countries, ship fares and supply chain costs have increased significantly.
World’s eyes fixed on talks in Switzerland
Relief will depend on the outcome of the US-Iran meeting to be held in Switzerland. If the negotiations are successful and the sea route remains safe, the pressure on gas and oil prices may ease in the coming months. But if Israel’s attacks continue and Iran remains adamant, there will be uncertainty in the market.