Due to increased rhetoric between America and Iran, crude oil prices have again crossed $ 110 per barrel today. After US President Donald Trump threatened to make Iran a hell, Iran has talked about stopping the global supply. Due to this, the price of one barrel of Brent crude has increased by $1.71 to reach $110.74 today. Market experts say that if this tension continues like this, crude oil prices may reach $150 per barrel. Additionally, if a $1 increase in crude oil prices continues throughout the year, India’s annual import bill will increase by about ₹16,000 crore. Indian basket becomes costlier by 71% in 38 days. India’s concern: There will be a direct impact on inflation and rupee. India imports about 90% of its crude oil requirement. Therefore this situation is worrying. Iran has almost closed the Hormuz Route. About 20% of the world’s oil and gas passes through this route. Due to its closure, the prices of not only crude oil but also aluminium, fertilizer and plastic have started rising drastically. According to rating agency CareAge Global, every $10 per barrel increase in crude oil prices can increase retail inflation in India by 60 basis points (0.60%). India is largely dependent on West Asia for its oil needs, hence worsening of the situation there will put pressure on India’s current account deficit, GDP growth and the value of the rupee. Trump’s ultimatum – time till 8 pm on Tuesday night. Trump called Iran a bastard and threatened to launch a major attack if the Strait of Hormuz is not opened. He said that if Iran does not open Hormuz, they will make it hell. Along with this, he talked about attacking power plants and bridges in Iran. Trump wrote on social media on Sunday that Power Plant Day and Bridge Day will happen simultaneously in Iran on Tuesday, that is, there will be an attack. Iran should open the Strait of Hormuz, otherwise it will reach a hell-like situation. Iran’s counterattack: The entire region will burn in the fire of war. After Trump’s statement, Iran has threatened that if the attacks by America and Israel increase, it will stall the global supply chain. According to the report of Al Jazeera, Iran has said that apart from Hormuz, it can also target other sea routes. Ali Akbar Velayati, advisor to the Iranian Supreme Leader, said that any major action would be responded to not just at the military level, but by impacting global energy and trade. He said that not only the Strait of Hormuz, but also important sea routes like Bab-al-Mandeb could be in danger. OPEC+ decided to increase production. To keep oil prices stable in the market, eight OPEC+ countries including Saudi Arabia and Russia held a virtual meeting on Sunday. It was decided that from May 2026, oil production will be increased by 2.06 lakh barrels per day. The move comes as part of changes to additional cuts announced last year. The organization says they are closely monitoring market conditions and may make further changes to production if necessary.
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Iran threatens to stop global supply, crude oil crosses $110: India’s import bill will be burdened by ₹ 16,000 crore, inflation may increase
