The ongoing war between Iran, US and Israel in the Middle East is now taking a toll on the world’s pockets. The attacks on the tenth day of the fighting have created a stir in the global market. Today, Monday, March 9, crude oil prices rose sharply, crossing $107 per barrel.
Increase in crude oil up to 17%
Oil prices rose as soon as trading started on Monday morning. US benchmark WTI crude oil rose 17.23% to $106.56, while global benchmark Brent crude oil rose 15.35% to trade at $106.92 per barrel. This is the first time in three and a half years that oil has crossed the $100 mark. Earlier on Friday, prices were around $90-$92.
Why are prices rising? The supply chain is under threat
The battle in the Middle East has now reached oil reserves and supply chains. The US and Israel have attacked Iranian oil depots, and in response Iran has targeted US bases in Kuwait, Qatar and the UAE. 20% of the world’s oil passes through the Strait of Hormuz, which Iran has threatened to close. Countries like Iraq and Kuwait have also reduced production due to lack of safe export routes.
Donald Trump’s statement and impact on the public
Amidst these rising prices, US President Donald Trump has said that this surge in oil prices is temporary. “This is a small price to pay for eliminating Iran’s nuclear threat, and the price will soon go down,” he wrote on social media. However, the ground reality is that petrol prices in the US have already increased by 47 cents to $3.45 per gallon. Experts believe that if oil remains above $100, a new wave of inflation could affect the entire world.
Will petrol and diesel become more expensive in India?
Amidst the ongoing fierce war in the Middle East and the tsunami in crude oil prices, there is news of some relief for the common Indian. According to government sources, despite the turmoil in the global market, there will be no increase in the prices of petrol and diesel in India. While oil prices are skyrocketing in neighboring countries and Europe, India is in a better position due to strengthening its energy stocks and diversifying energy sources. In a recent review meeting, it has become clear that the country’s oil and LPG reserves are now quite safe, hence despite the global crisis, the inflation of petrol and diesel will not put a burden on your pocket at the moment.
