Big update on petrol and diesel prices, are oil prices going to increase due to Israel-Iran conflict?

After Iran’s attack on Israel, the price of crude oil in the international market has increased from about $ 70 per barrel to close to $ 79 per barrel within a week. Due to the fear of Israel’s retaliation and the conflict that may increase, there is a sharp rise in the prices of crude oil. Amid the rising prices of crude oil, there are also speculations of increase in the prices of petrol and diesel. Meanwhile, a big statement has come from Union Petroleum Minister Hardeep Singh Puri.

Nothing to worry

Union Petroleum Minister Hardeep Singh Puri said on Tuesday that India will be able to deal with any shock to crude oil supplies due to a possible expansion of the ongoing conflict in West Asia. The minister said, “There is nothing to panic. There is more than enough oil available in the world.” India, the world’s third largest oil importer and consumer, meets 85 percent of its crude oil needs through imports. The Petroleum Minister said, “The situation is manageable. There is no need to worry. We are confident that we will be able to deal with the situation like in the past.”

Iran may close the Strait of Hormuz after Israel’s attack

Hardeep Singh Puri said that there is a lot of supply of oil in the international market and if some parties stop production or there are supply related problems, then there are new suppliers in the market who will fill this gap. After Iran’s missile attack, it is feared that Israel can target the oil or nuclear centers of oil producer Iran. If this happens, Iran can respond by directly attacking Israel or closing the Strait of Hormuz. 

The Strait of Hormuz is very important for oil transportation

The Strait of Hormuz, located between Oman and Iran, is considered very important for oil transportation. One-fifth of the global oil passes through this strait. Crude oil from all major oil producing countries – Saudi Arabia, Iraq, Kuwait and the United Arab Emirates (UAE) – is exported through the Strait of Hormuz. Of these, only Saudi Arabia and the UAE have oil pipelines that can cross the Strait of Hormuz.