Iran-Israel conflict On (Iran-Israel conflict), analysts said that if Iran closes the Strait of Hormuz, the prices of crude oil and LNG may increase. Through this strait, countries like India import crude oil from Saudi Arabia, Iraq and UAE. The conflict between Iran and Israel has escalated in the last few days. Iran first launched drone and rocket attacks on Israel. After this Israel retaliated by firing missiles.
Crude oil prices reached $90
Since the conflict, crude oil prices have reached around US $ 90 per barrel. Motilal Oswal Financial Services said that although efforts to ease tensions are likely to bring the crisis under control, oil and LNG prices would rise sharply if Iran blocked the Strait of Hormuz.
What is the Strait of Hormuz?
The Strait of Hormuz is a sea strip approximately 40 kilometers wide between Oman and Iran. Through this route, Saudi Arabia (63 lakh barrels per day), UAE, Kuwait, Qatar, Iraq (33 lakh barrels per day) and Iran (13 lakh barrels per day) export crude oil. About 20 percent of global LNG trade passes through it. This includes almost all LNG exports from Qatar and the UAE. Motilal Oswal in his comment said that there is no alternative route available for this Liquefied Natural Gas (LNG). India imports oil as well as LNG from Saudi Arabia, Iraq and UAE through this route.
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