3 weeks ago
Iran Strikes Lift Brent Crude, Fuel Prices Steady in India
Every day, companies in India set the price people pay for petrol and diesel.
On 7 August, these prices stayed almost the same in big cities like Delhi and Mumbai.
This is because government-owned oil companies protect customers from sudden changes in world oil prices.
World oil prices did go up because of fighting between Iran and the United States near the Strait of Hormuz.
The Strait of Hormuz is a narrow sea passage that many oil ships use.
Iran attacked targets in the Persian Gulf near the entrance to the Strait.
US President Donald Trump said talks with Iran were going fine and that the war would end soon.
But other experts said a deal to reopen the Strait to normal shipping was still not clear.
So the price of Brent crude oil rose to about $83 a barrel, and gold traded around $4,240 an ounce.
Most Indian drivers, however, did not see any change at the petrol pump.
Retail petrol and diesel prices across major Indian cities remained largely unchanged on 7 August.
Brent crude traded around $83.45 a barrel, nearly 1% higher, after surging almost 4% in the previous session.
Iran launched a fresh wave of attacks on 'hostile targets' in the Persian Gulf at the entrance to the Strait of Hormuz.
US President Donald Trump said negotiations with Iran were 'going fine' and that the war will end 'pretty soon'.
State-owned oil marketing companies shielded Indian consumers from crude price swings; the last major fuel price revision came on 25 May.
- Who
- Iran, the United States (including President Donald Trump), and India's state-owned oil marketing companies (OMCs), with Iran-backed Houthis also involved.
- What
- Iran launched fresh attacks near the Strait of Hormuz, pushing Brent crude higher, while retail petrol and diesel prices across Indian cities stayed unchanged.
- Where
- The Persian Gulf and Strait of Hormuz in West Asia, and major Indian cities such as Delhi, Mumbai and Bengaluru.
- When
- 7 August, following attacks on Thursday night; India's last major fuel price revision was on 25 May.
- Why
- Geopolitical tensions over the Strait of Hormuz drove crude prices higher, but Indian OMCs shielded retail fuel prices from the fluctuation.
United States
Iran
Control of the Strait of Hormuz
United States
President Trump said the US is in control of the strait and the war will end 'pretty soon'.
Iran
Iran attacked 'hostile targets' near Qeshm Island and intends to bar US and Israeli ships from the waterway under a proposed Iran-Oman agreement, demanding compensation from hostile countries.
Prospects for a deal
United States
Trump said negotiations with Iran are 'going fine', and both sides signaled an accord may be close.
Iran
Optimism over reopening the strait evaporated; US Bank's Rob Haworth said deals remain elusive, traffic stays low, and the path to a durable deal is unclear.
Key facts
- Date
- 7 August
- Brent crude price
- ~$83.45 per barrel
- WTI crude price
- ~$78 per barrel
- Gold price
- ~$4,240 per ounce
- Petrol price - New Delhi
- ₹102.12 per litre
- Diesel price - New Delhi
- ₹95.20 per litre
- Petrol price - Mumbai
- ₹111.21 per litre
- Last major fuel price revision
- 25 May
Quotes
Rob Haworth
Senior investment strategy director at US Bank Asset Management Group
“Deals to reopen the Strait of Hormuz remain elusive, with investors teetering in the balance. For now, traffic remains low and the path to a durable deal remains unclear.”
livemint.com
Donald Trump
President of the United States
“The war will end "pretty soon"”
livemint.com
Sources
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