New Delhi: International crude oil prices have surged following an attack in Saudi Arabia, with Brent crude rising above $112 per barrel and US West Texas Intermediate (WTI) climbing to around $99. Escalating geopolitical tensions in the Middle East continue to unsettle global energy markets, despite an increase in oil shipments through the Strait of Hormuz.

Since the outbreak of the US-Iran war, Brent crude prices have risen by more than 80 per cent this year, according to the figures cited in the report. While crude oil supplies have moved closer to pre-war levels in recent weeks, transportation of refined petroleum products continues to face disruptions.

Strait of Hormuz Remains a Major Concern

The Strait of Hormuz is a critical route for global oil shipments. Amid security concerns, some oil tankers have reportedly been switching off their transponders to avoid detection while travelling through the region.

Iran has been accused of attacking vessels passing through the strategic waterway, while Iran-backed Houthi forces have targeted Saudi Arabia. Reports of possible coordinated military action by the United States and Israel against Iran have further heightened concerns over regional stability.

Any further escalation could create fresh uncertainty over oil supplies and push international crude prices even higher.

Why Rising Oil Prices Matter for India

India is particularly vulnerable to an increase in crude oil prices because it imports around 85 per cent of its oil requirements, as stated in the report.

Higher oil prices can increase India's import bill, widen the trade deficit and put pressure on the rupee. They can also contribute to inflation by raising transportation, manufacturing and logistics costs.

The impact may extend to the equity markets, as higher energy costs can affect corporate profitability, consumer spending and investor sentiment.

Russia-US Oil Developments in Focus

Amid the pressure on global energy markets, the report also points to an understanding between Russia and the United States concerning oil supplies, including the possibility of Russia purchasing oil from the US.

Developments in international energy trade, along with the security situation in the Middle East, will remain important factors influencing crude prices in the coming days.

For India and other major oil-importing economies, the key concern is whether geopolitical tensions will continue to disrupt energy markets and keep prices elevated.