For the last few months, there has been a continuous decrease in the prices of crude oil, which also provided some relief to the prices of petrol and diesel in India. But now the possibility of its rapid increase has become very high. The reason for this is the tension in the Gulf countries reaching its peak.
After the attack on Iran by Israel, oil prices jumped by a tremendous 7 percent on Friday. After this, this record increase in the price of crude oil has been recorded after several months. Let us know the whole story of this sudden jump, what effect it has had on the international market, and how much burden it can increase on your pocket in India.
Big jump in crude oil prices
On Friday, Brent Crude Futures rose $5.29 or 7.63 percent to $74.65 per barrel after touching $75.23 intraday. This is the highest increase in the price of crude oil since April 2. At the same time, West Texas Intermediate Crude (WTI) rose $5.38 or 7.91 percent to $73.42 per barrel after touching a record $74.35. This surge is a sign of serious uncertainty in the oil market, as the Gulf region is an important source of global oil supply.
Oil prices rise due to Israeli attack
It is worth noting that Israel has said that it has attacked Iran on Friday. This attack took place amid US efforts, which was trying to persuade Iran to sign an agreement to prevent it from making a nuclear bomb. Iranian media says sounds of explosions were heard in Tehran.
Saul Kavonic, senior energy analyst at MST Markey, says that unless the conflict between Israel and Iran escalates to such a level that Iran launches a retaliatory attack on oil infrastructure in the region, there will not be a major impact on oil supplies. However, he further said that in extreme situations, Iran could disrupt supplies of up to 20 million barrels per day by attacking oil infrastructure or restricting traffic through the Strait of Hormuz. This figure would be extremely worrying for the global oil market.
Will destroy Iran’s nuclear infrastructure
On the other hand, Israeli Prime Minister Benjamin Netanyahu said that the attacks on Iran aim to destroy its nuclear infrastructure, ballistic missile factories, and many military capabilities. At the same time, US Secretary of State Marco Rubio said on Thursday that Israel’s attack on Iran is one-sided and Washington is not involved in it in any way. He appealed to Tehran not to target American interests or its soldiers.
Impact of international tension on India
India imports a large part of its crude oil needs. In such a situation, the increase in crude oil prices in the international market will have a direct impact on the prices of petrol, diesel, and other petroleum products in India.
Petrol and diesel are expensive.
Risk of inflation
Economic challenge