New Delhi: The ongoing conflict between Iran and Israel has triggered serious tremors across global energy markets, with crude oil prices soaring and fears of further escalation rattling investors. The price hike is largely attributed to Israel’s recent aerial offensive on Iranian military targets, which has led to a sharp geopolitical spike in oil benchmarks like Brent crude. Energy analysts now fear a broader regional conflict could disrupt vital oil shipping lanes, including the Strait of Hormuz a critical chokepoint for global crude and LNG shipments.
As tensions mount, crude prices have jumped over 11%, with Brent crude nearing the $78 per barrel mark. This price surge has affected not just oil-dependent economies but also stock markets and currency valuations worldwide. Investors have begun shifting to safe-haven assets such as gold, the U.S. dollar, and the Swiss franc, reflecting wider market nervousness about a prolonged conflict and its implications for global energy stability.
India, although not directly involved in the hostilities, is likely to face significant secondary consequences. While its current oil supplies remain unaffected, the country’s heavy reliance on imported crude makes it vulnerable to global price fluctuations. Indian refineries are already bracing for shrinking profit margins due to elevated input costs. Moreover, the Indian rupee has taken a hit, falling to a two-month low against the U.S. dollar. In response, the Reserve Bank of India has reportedly stepped in by selling dollars to stabilize the currency and cushion the economic blow.
Petroleum Minister Hardeep Singh Puri has attempted to reassure the public, stating that India’s strategic petroleum reserves and energy security framework are strong enough to handle temporary disruptions. Despite the external pressures, oil marketing companies are expected to delay passing on the increased costs to consumers immediately, aiming to avoid inflationary panic.
In conclusion, while India remains geographically distant from the Iran–Israel theatre of conflict, the ripple effects of rising oil prices and currency volatility are real. The situation highlights the interconnected nature of global geopolitics and energy security, emphasizing the importance for countries like India to remain prepared for external shocks that can quickly translate into domestic economic challenges.