Archive · 14 Jun 2025
Israel-Iran Conflict Raises India's Oil Price Concerns
The conflict between Israel and Iran is making oil prices go up.
This is because the fighting might stop oil from being shipped out of the Middle East, which is a big oil producer.
India buys a lot of its oil from other countries.
If the route where oil ships pass through gets blocked, it will be harder for India to get oil.
However, experts believe that if the conflict doesn't get worse and disrupt oil exports, prices may go down again.
Oil prices surged due to concerns of supply disruptions from the West Asia region.
Brent crude prices rose to over $78 per barrel, a five-month high.
India imports about 80% of its oil, with the Strait of Hormuz as a key chokepoint.
Analysts say disruptions in the Strait of Hormuz could affect oil shipments to India.
The impact on oil and gas markets depends on whether the conflict escalates.
- Who
- Affecting global markets, with implications for oil importers like India.
- What
- Rising oil prices due to potential disruptions from the Israel-Iran conflict.
- When
- Following recent airstrikes and escalating tensions between Israel and Iran.
- Where
- Impacting global energy markets and particularly concerning for India.
- Why
- Due to concerns that the conflict may disrupt oil supplies, especially through the Strait of Hormuz.
Potential Market Disruptions
Market Stability
Oil Supply
Potential Market Disruptions
Risk of increased prices and disruption of oil supplies to India.
Market Stability
Potential for sustained oil prices increase unless exports are directly disrupted.
- Brent Crude Price Increase
- Over $6 to $78/barrel
- India's Oil Import
- Approximately 80%
- Key Chokepoint
- Strait of Hormuz
- Global LNG Trade Through Hormuz
- Nearly 20%
- Price Volatility
- Volatility Index (VIX) spiked nearly 8%
Sources
Escalating Israel-Iran conflict to keep markets on boil in near term
Iran-Israel worries Indian tea trade on possible halt in shipments
Indian tea exporters a worried lot after Israel’s attack on Iran
India-Israel trade may weather conflict, but Strait of Hormuz the big risk
Sensex falls over 570 points as Israel-Iran tensions send oil prices soaring, trigger safe-haven rush
Israel’s attack on Iran sparks concern among Zoroastrians, Iranian Muslims in Mumbai
Iranian students in Pune lament Iran-Israel conflict: We just want a normal life
Basmati rice exporters fear slowdown in shipment to Iran, delayed payment
As Israel-Iran conflict escalates, Basmati exporters feel the pinch