<p>Iran’s move to shut the Strait of Hormuz, a critical waterway between the Persian Gulf and the Gulf of Oman through which nearly 20% of the global oil and gas are shipped, will lead to further surge in crude prices and badly hit the Indian economy, experts said.</p><p>“Any closure could send oil prices soaring, sharply inflating India’s import bill, worsening inflation, and putting pressure on the country’s fiscal position,” said Global Trade Research Initiative (GTRI) founder Ajay Srivastava.</p><p>Iran’s Parliament, which is known as the Majlis, on Sunday reportedly, recommended closure of the Strait of Hormuz following the US airstrikes on key Iranian nuclear facilities. The final decision will be taken by Iran’s Supreme National Security Council. While the closure of the strait is not yet confirmed, its possibility has led to a surge in crude oil prices in the international markets.</p> <p>Nearly two-thirds of India’s crude oil and half the country’s liquefied natural gas (LNG) imports transit through the <a href="https://www.deccanherald.com/world/hormuz-closure-after-parliament-nod-irans-top-security-body-to-decide-3597813">Strait of Hormuz</a>.</p><p>“Shipping insurance premiums and freight costs are also expected to surge, squeezing not only India’s energy markets but also broader trade between Asia and Europe,” said Srivastava. </p><p>The possible closure of the Strait of Hormuz would be unprecedented as Iran has not done it before in any war or conflict. Major oil and gas suppliers, including Saudi Arabia, the UAE, Qatar, Kuwait and Iraq also use the strait for their exports.</p>.Iran strikes are a stress test for global order — and it’s failing.<p>On Monday crude oil price in the international markets jumped to its highest level since January. Brent surged 2.44% to $78.89 a barrel, while US West Texas Intermediate jumped 2.53% to $75.71 a barrel. “The recent geopolitical tensions in the Middle East have reignited concerns over the stability of global oil supply chains. While prices remain within the $70–80 per barrel range, the uncertainty continues to keep markets cautious,” said Kapil Garg, founder and managing director of Oilmax Energy.</p><p>Rohit Sarin, co-founder of Client Associates, a wealth management firm, said the disruption in the Strait of Hormuz poses downside risk on India’s economic growth and may fuel inflation and hit stock markets. “While domestic inflows may remain supportive, foreign investor sentiment could weaken, and high equity valuations particularly in mid-caps may face correction pressures,” said Sarin.</p>
<p>Iran’s move to shut the Strait of Hormuz, a critical waterway between the Persian Gulf and the Gulf of Oman through which nearly 20% of the global oil and gas are shipped, will lead to further surge in crude prices and badly hit the Indian economy, experts said.</p><p>“Any closure could send oil prices soaring, sharply inflating India’s import bill, worsening inflation, and putting pressure on the country’s fiscal position,” said Global Trade Research Initiative (GTRI) founder Ajay Srivastava.</p><p>Iran’s Parliament, which is known as the Majlis, on Sunday reportedly, recommended closure of the Strait of Hormuz following the US airstrikes on key Iranian nuclear facilities. The final decision will be taken by Iran’s Supreme National Security Council. While the closure of the strait is not yet confirmed, its possibility has led to a surge in crude oil prices in the international markets.</p> <p>Nearly two-thirds of India’s crude oil and half the country’s liquefied natural gas (LNG) imports transit through the <a href="https://www.deccanherald.com/world/hormuz-closure-after-parliament-nod-irans-top-security-body-to-decide-3597813">Strait of Hormuz</a>.</p><p>“Shipping insurance premiums and freight costs are also expected to surge, squeezing not only India’s energy markets but also broader trade between Asia and Europe,” said Srivastava. </p><p>The possible closure of the Strait of Hormuz would be unprecedented as Iran has not done it before in any war or conflict. Major oil and gas suppliers, including Saudi Arabia, the UAE, Qatar, Kuwait and Iraq also use the strait for their exports.</p>.Iran strikes are a stress test for global order — and it’s failing.<p>On Monday crude oil price in the international markets jumped to its highest level since January. Brent surged 2.44% to $78.89 a barrel, while US West Texas Intermediate jumped 2.53% to $75.71 a barrel. “The recent geopolitical tensions in the Middle East have reignited concerns over the stability of global oil supply chains. While prices remain within the $70–80 per barrel range, the uncertainty continues to keep markets cautious,” said Kapil Garg, founder and managing director of Oilmax Energy.</p><p>Rohit Sarin, co-founder of Client Associates, a wealth management firm, said the disruption in the Strait of Hormuz poses downside risk on India’s economic growth and may fuel inflation and hit stock markets. “While domestic inflows may remain supportive, foreign investor sentiment could weaken, and high equity valuations particularly in mid-caps may face correction pressures,” said Sarin.</p>