There is turmoil in the market due to the war situation between Israel and Iran in the Middle East. The impact of the war is not limited only to crude oil and stock market, but its impact is also visible in the prices of Liquefied Natural Gas (LNG). That means, if the situation does not remain normal then there will be a huge rise in these things in the coming time. This effect will be especially visible in the countries of Europe and Asia. India is also included in these.
Government sources said that our situation is quite comfortable in terms of crude oil, LPG and LNG. We have crude oil reserves of 25 days. There is also a product stock of 25 days. This also includes the goods present in transport.
Iran’s Supreme Leader Ayatollah Khamenei has been killed in a joint action by Israel and America. Here, Iran has closed the Strait of Hormuz. It has also been said that Iran will not allow even a drop of oil to pass through Hormuz. After this threat from Iran, there will be a decrease in the supply of oil globally and its prices will also increase.
How much impact will closure of Hormuz have on India?
What impact will this decision of Iran have on India? 20 percent of India’s crude oil is imported and exported through this route. 40 percent of India’s oil and 50 percent of gas passes through this route. In such a situation, India may have to face difficulties in the future due to closure of the road. Iran has also attacked Gulf countries supporting America. Their refinery has been attacked. The price of crude oil has currently reached $78.52 per barrel. Apart from this, the price of an LNG tanker is around 2 lakh dollars.
If the war drags on, difficulties may increase for India. In such a situation, India can again increase oil purchases from Russia. India has a cheaper option to buy oil from Russia.
Also read: Israel US Iran War Live: Big attack by Israel, voting was taking place to elect the Iranian Supreme Leader, missile fired there
