Tension between Iran and Israel is once again at its peak. Amidst this noise of missiles and attacks, a game is going on which is going to have a direct impact on your pocket. The eyes of the whole world are fixed on the smoldering situation in the Middle East, but in the meantime China has made a very strategic move. This fight is no longer just between two countries. If this war continues for a long time, the prices of petrol and diesel in India may skyrocket. On one hand, there is a possibility of crude oil prices rising due to war, on the other hand, Dragon is using this global crisis as a big business opportunity. Let us understand what is going on behind the scenes and what effect it will have on your kitchen and everyday expenses.
That important route of the sea, from where the price of oil is decided
This tension in the Middle East is directly hurting the crude oil supply chain. Iran produces about 33 lakh barrels of crude oil every day. This is about 3 percent of the total supply worldwide. The biggest danger of this war is looming over the ‘Strait of Hormuz’. This sea route is very special because about 20 percent of the world’s total oil trade passes through here.
Ever since America has increased its military activities in this area, the prices of crude oil have increased by 10 percent. The cost of shipping oil from the Middle East has increased by 584 percent compared to the first week of January, even before the war began. The situation is such that the daily fare for big ships (2 million barrel capacity) going from the Middle East to China has crossed two lakh dollars. Experts believe that if this fight does not stop, the price of crude may reach a dangerous level of $ 110 per barrel.
How did China fill its coffers under the guise of war?
When the whole world is scared of possible economic losses, China is quietly busy filling its energy coffers. In recent times, China has purchased crude oil on a large scale from Russia, Saudi Arabia and Iran. Saudi Arabia’s leading oil shipping company ‘Bahri’ has sent five huge supertankers to China, which is the largest consignment in the last six months.
The matter does not end here. Saudi Arabia has prepared to send 8 million barrels of additional oil to China next month. Amidst the increasing tension with America, Iran has also increased the supply of oil to China manifold. Between February 15 and 20, Iran’s crude exports jumped 200 percent to 20 million barrels. This amounts to about 3 million barrels per day, which is much more than Iran’s normal export. Satellite images have also confirmed that the number of oil tankers at Iranian ports has increased from 8 to 18. Before the American attack last year and in the beginning of 2024, Iran had adopted exactly the same pattern.
Dragon preparing to make huge profits by buying cheaply
China is currently the largest importer of crude oil in the world. If we look at the figures, last year it imported 11.6 million barrels of crude oil daily, which is 4.4 percent more than in 2024. Iran’s economy is largely dependent on oil exports and most of its oil goes to China.
Experts say that China has accumulated a huge reserve of crude oil in its country. His strategy is very clear. In this tense environment, it has purchased huge quantities of oil at cheap prices. In the future, when traffic in the Strait of Hormuz will be affected and oil prices will skyrocket in the international market, then China will earn big money by selling this oil.
Alarm bells for India, how will it hit the pocket?
This whole turmoil is a big alert for India. In the last trading session, Brent crude closed at $ 72.87 per barrel with a rise of $ 2.03 (2.87 percent). If the Strait of Hormuz is closed and oil reaches 95 to 110 dollars per barrel, it will have a direct impact on the Indian economy.
India imports about 85 percent of its total oil requirement from abroad. It is a matter of concern that more than half of our country’s oil comes through this affected route. Crude oil becoming expensive directly means that the prices of petrol and diesel will increase in India. Due to cost of fuel, the cost of transportation of goods will increase, due to which the prices of ration, vegetables and all the daily essentials will increase.
Read this also- Due to Iran-Israel war, petrol and diesel may catch fire, crude oil may reach $ 110!