israel But after Iran's attack, the prices of crude oil in the international market have increased from around $70 per barrel to around $79 per barrel within a week. There is a sharp rise in the prices of crude oil due to Israel's retaliatory action and the fear of increased conflict. Amid rising prices of crude oil, there are also speculations about increase in prices of petrol and diesel. Meanwhile, a big statement has come from Union Petroleum Minister Hardeep Singh Puri.
Nothing to worry
Union Petroleum Minister Hardeep Singh Puri on Tuesday said India will be able to handle any shock to crude oil supplies due to the possible expansion of the ongoing conflict in West Asia. The minister said, “There is no need to panic.” There is more than enough oil available in the world.'' India, the world's third largest oil importer and consumer country, fulfills 85 percent of its crude oil requirement through imports. The Petroleum Minister said, “The situation is manageable. There is no need to worry. We are confident that we will be able to deal with the situation like in the past.
Iran may close the Strait of Hormuz after Israel's attack
Hardeep Singh Puri said that the supply of oil in the international market is very high and even if some parties stop production or there are supply related problems, then there are new suppliers in the market which will fulfill this shortage. After Iran's missile attack, it is feared that Israel may target oil or nuclear centers of oil producing Iran. If this happens, Iran can respond by directly attacking Israel or closing the Strait of Hormuz.
Strait of Hormuz is very important for oil transportation
The Strait of Hormuz located between Oman and Iran is considered very important for oil transportation. One-fifth of global oil passes through this strait. Crude oil from all the major oil producing countries – Saudi Arabia, Iraq, Kuwait and United Arab Emirates (UAE) is exported through the Strait of Hormuz. Of these, only Saudi Arabia and the UAE have oil pipelines that can cross the Strait of Hormuz.
Image Credit: India-Tv.