The turmoil in the Gulf region has intensified as Iran has claimed control over the Strait of Hormuz. President Donald Trump has relaxed his previous warning by five days so that the crisis can be resolved through talks. Iran has clearly said that it will not allow ships belonging to America and Israel to pass through this route.
ℹ: Iran-Israel War: Iran fired missiles, President Trump postponed retaliatory attacks for 5 days.
Strait of Hormuz dispute and what is the current situation?
Iran has made new rules for ships passing through the Strait of Hormuz and has talked about recovery of up to 2 million dollars from some ships. A large part of the world’s trade takes place through this sea route, hence there is a rule to keep it open under international law. But Iran says it has the right to control it for its own security. Amidst this tension, an increase in oil prices has been seen in the international market.
What will be the impact on Indians living in Gulf countries?
This situation is important for millions of Indians living in countries like UAE and Saudi Arabia. Insecurity in sea routes has a direct impact on the supply of goods and inflation. India sources much of its oil needs through this route. At present, countries like India and China are talking about the safety of their ships. Some key points related to this development are given below:
The UAE has kept its air defense system on alert and foiled the attacks. The rise in crude oil prices may affect the prices of petrol and diesel in India. G7 countries have condemned this move of Iran and called it a threat to maritime trade. Russia has advised that this matter should be resolved only through diplomacy. Iran has threatened to target power plants if America attacks.
