The attack by Iran-backed Houthi rebels has created panic in crude oil prices. Once again the prices of crude oil have started going out of control. On Thursday, the price of Brent crude in the international market jumped more than 6% to cross $ 100 per barrel, which is the highest level in the last eight weeks.
At the same time, American WTI crude also remained on the rise for the second consecutive day. During this period it increased by more than 5% and reached close to $ 92 per barrel. This is the highest after June 11. This rise in crude oil prices is likely to affect India as well. Let us tell you that India imports crude oil on a large scale. If the situation does not improve, the import bill for crude oil will increase and there will be a possibility of inflation increasing due to this.
Reason for sudden rise?
In fact, Iran-backed Houthi rebels claimed to have attacked two Saudi Arabian oil tankers in the Red Sea. This group had already announced the blockade of Saudi Arabia. In such a situation, it can now be said that the scope of the conflict is increasing. Let us tell you that since the start of the Iran war, attacks on ships were mostly happening around the Strait of Hormuz.
The latest claims suggest the threat could now extend to the Red Sea, adding another point of concern to the oil market. The Red Sea route is important because millions of barrels of oil destined for markets around the world pass through the Bab-el-Mandeb strait. The waterway also carries about 12-15% of the world’s maritime trade, valued at more than $1 trillion annually. It has also been used as an alternative route through the Strait of Hormuz. In such a situation, danger is now looming on the alternative route also.
Why tension for India?
This deteriorating environment may affect India and inflation may increase in the country. This is because the prices of petrol and diesel will increase due to the cost of crude oil. This will increase transportation costs and then prices of most imported goods may increase. Let us tell you that its impact is visible on America before India. The average price of petrol in America has increased to $ 4.09 per gallon.
