Crude Oil Prices Rise High Due to Iran-Israel Tensions

Crude Oil prices are rising high. These increasing prices can have severe impacts on India as well. According to the news, India is among the top importers of crude oil. 80% of the crude oil is imported. Thus, wars and attacks in Iran and Israel can have a serious impact thereafter. The price is expected to rise to $90-$94. Places like Russia and Iran are facing a lot of challenges at the moment economically.

Crude Oil Prices Expect To Rise Higher In India

Crude Oil prices are seeing an upward surge. The main reason for the increase is the ongoing tensions in the Western Asian countries. Iran and Israel’s war is also becoming a big factor in the price hike. Israel bombed Iran’s embassy situated in Syria. The incident took place on 1 April 2024. Seven lives were lost in the attack. Three of them were top commanders of Iran. The bombarding took place on a plane. Iran wants revenge after Israel’s attack.

The current Brent crude prices are already above the $91 per barrel mark. It already increased by 4% in the past week. If we talk about the yearly growth, it shows a rise of 18% in a year. Thus, this increase is also because of the US and Chinese industry growth. Iran comes in third number in the case of crude oil supply.

These all factors can have a severe impact on the Indian economy as well. The country successfully announced its current year’s budget and final plans. However, the increase in crude oil prices can lead to inflation rates becoming even higher. It can disrupt several sectors of the economy as well.

There are a lot of things that run on crude oil. It’s a multi-purpose oil for products like Gasoline, jet fuel, waxes, and plastics. Thus, there are other wider sectors as well. India is trying to become an exporter of as many things as possible. For example, India is now trying to convert all vehicles to electric. Its goal is to go electric by 2030.

There are several people already starting to buy electric cars. As per Vijaykumar, the crude oil rise will remain normal for India until it’s between the range of $89-$92. However, if it starts touching $95, it can be a serious problem. This will impact the tires, paints, and oil. We hope you get enough details about the current crude oil prices hike above. Stay tuned for more information on our website.