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War-Driven Chokepoints Keep Oil Prices High, Threatening India

War-Driven Chokepoints Keep Oil Prices High, Threatening India
Double chokepoints · financialexpress.com

The article says a war in West Asia is making oil more expensive.

Oil ships use narrow sea passages called chokepoints to move around the world.

The Strait of Hormuz carries about one-fifth of global oil supplies.

Another important passage, the Bab el-Mandeb Strait, is also becoming harder for ships to use.

Houthi forces have attacked ships connected to Saudi Arabia.

A drone attack also forced Saudi Arabia to temporarily shut part of its pipeline to the Red Sea.

Saudi Arabia may now have to use a longer and more expensive route through the Suez Canal.

The article warns that India could pay more for energy, face a larger trade deficit, and see pressure on its currency.

It argues that India should increase domestic oil production to become less dependent on imports.

Key facts

Brent average
$98 a barrel from March-August 2026
Year-on-year increase
41% compared with March-August 2025
Later Brent peak
$109 a barrel earlier this week
Strait of Hormuz
Carries about one-fifth of global oil supplies
Bab el-Mandeb
Carried 4-5% of global oil supplies in recent months
India’s crude basket
Near $130 a barrel this month, according to the article
Saudi alternative route
Oil may need to travel north through the longer, costlier Suez Canal route

Sources

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