Global Crude Hits Highest Level Since 2022; Experts Warn Prices Could Reach $150
New Delhi (Economy India): Global crude oil prices have surged to their highest levels since 2022 amid escalating conflict involving Iran, pushing international benchmark crude above $115 per barrel.
The sharp rise comes as tensions involving the United States, Israel and Iran threaten critical energy supply routes in West Asia, triggering fears of a global oil supply disruption.
Market data show that Brent crude prices climbed more than 25% to around $116 per barrel on March 9, marking the highest level in more than three years. Analysts warn that if geopolitical tensions continue, crude prices could climb further to $150 per barrel.
Strait of Hormuz Disruption Drives Oil Spike
One of the biggest factors behind the surge in oil prices is the near closure of the strategically crucial Strait of Hormuz.
The narrow waterway, which is about 167 kilometres long, connects the Persian Gulf to the Arabian Sea and serves as one of the world’s most important oil shipping routes.
Nearly 20% of the world’s petroleum supply passes through this strait, making it a critical artery for global energy markets.
Major oil-exporting countries such as Saudi Arabia, Iraq and Kuwait rely heavily on this route to ship crude oil to international markets.
Due to rising security risks linked to the conflict, several oil tankers have reportedly avoided the route, tightening global supply and pushing prices higher.
Attacks on Oil Infrastructure
Another factor contributing to the surge in oil prices is the escalation of attacks on energy infrastructure across the region.
Following strikes by the United States and Israel on Iranian targets, Iran reportedly carried out drone attacks on oil facilities in Gulf countries including Saudi Arabia, Qatar and Kuwait.
In one notable incident, Iran launched a drone attack on an oil refinery in Ras Tanura operated by Saudi Aramco—one of the world’s largest oil and gas companies.
These attacks have forced some energy producers to temporarily scale back operations, adding further pressure to global oil supplies.
Oil Prices Jump 60% in Just 10 Days
Since the conflict began on February 28, global crude prices have surged nearly 60% within just ten days, reflecting severe market anxiety.
The last time oil prices crossed the $100 mark was during the early phase of the Russia–Ukraine War, when global energy markets were thrown into turmoil.
Energy analysts now warn that continued disruptions in West Asia could push prices significantly higher in the coming weeks.
Potential Impact on India
As one of the world’s largest oil importers, India could feel the impact of rising crude prices.
India imports nearly 85% of its crude oil requirements, and a significant portion of these imports pass through the Strait of Hormuz.
Experts estimate that if global crude prices continue to rise, petrol and diesel prices in India could increase by ₹5–₹6 per litre.
However, the Indian government has said that the country currently has adequate oil reserves and supply buffers.
Reports indicate that India’s strategic and commercial reserves could sustain the supply chain for seven to eight weeks even if global shipments are disrupted.
US Allows India to Buy Russian Oil
Amid supply concerns, the United States Department of the Treasury recently provided limited relief to India regarding Russian crude purchases.
According to US Treasury Secretary Scott Bessent, Indian refineries have been granted a 30-day special license to purchase Russian crude oil.
The move aims to stabilize global oil markets and ensure sufficient supply during the ongoing geopolitical crisis.
India significantly increased purchases of discounted Russian oil after the start of the Russia-Ukraine war.
Fuel Prices in India Remain Stable
Despite fluctuations in global crude markets, petrol and diesel prices in India have remained largely stable over the past four years.
In contrast, fuel prices have risen significantly in several countries. For example, petrol prices have increased by about 55% in Pakistan and 22% in Germany over the same period.
LPG Cylinder Prices Rise
Meanwhile, the Indian government recently increased domestic LPG cylinder prices by ₹60.
A 14.2-kg LPG cylinder in Delhi now costs ₹913, compared with ₹853 earlier.
Commercial LPG cylinders weighing 19 kg have become costlier by ₹115, with prices now reaching ₹1,883.
The revised prices came into effect from March 7.
(Economy India)
