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Crude Oil WTI futures trade 12.2% higher at $90.90 at the time of filing this report; the benchmark has recorded its biggest weekly gain since April 2020, according to reports.
India imports nearly 90% of its crude oil requirements. About two million barrels per day of this, out of 5.5 million, transits through the Strait of Hormuz.
Crude oil prices surged sharply after US President Donald Trump demanded what he described as “unconditional surrender” from Iran, raising fears of a prolonged conflict that could disrupt global energy supplies.
Crude Oil WTI futures were trading 12.2 per cent higher at $90.90 at the time of filing this report. The benchmark has recorded its biggest weekly gain since April 2020, according to reports.
The spike comes amid escalating tensions in the wider West Asia region, with analysts warning that the conflict could create sustained volatility in global oil markets and eventually impact energy-importing economies such as India.
Strait of Hormuz concerns push oil higher
Market experts say the biggest concern for traders is the risk to oil shipments passing through the strategic Strait of Hormuz.
Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, said the ongoing conflict is likely to keep oil prices elevated.
“The war has significantly disrupted energy markets and heightened concerns about supply flows through the Strait of Hormuz, one of the world’s most critical oil shipping routes. Approximately 20% of global oil supply passes through this chokepoint, making it highly sensitive to geopolitical disruptions,” Sheth said.
Risk of largest oil supply shock
According to analysts, the conflict between the United States and Israel on one side and Iran on the other could potentially trigger one of the biggest supply shocks in oil market history if shipping through the Strait of Hormuz is disrupted.
Jim Burkhard, Global Head of Crude Oil Research at S&P Global Energy, said the situation has already started impacting energy infrastructure in the region.
“The war between the United States and Israel against Iran has the potential to be the largest oil supply disruption in history if oil flows via the narrow Strait of Hormuz remain low or come to a halt,” Burkhard said.
“Initially, energy infrastructure had not been targeted by Iran, but that has changed with attacks on facilities in Saudi Arabia and Qatar. This adds a critical further dimension to the shock wave hitting oil and gas markets, according to a new S&P Global Energy analysis,” he added.
Tanker traffic through strait drops
Data from S&P Global Energy Commodities at Sea also indicates that tanker movement through the Strait of Hormuz has sharply declined.
The data shows that on March 1, only five oil tankers passed through the Strait, compared with around 60 tankers per day in recent periods.
The sharp fall in tanker traffic has intensified fears that prolonged disruption in the Strait could tighten global oil supplies and keep crude prices volatile in the coming weeks.
Hormuz is crucial for India
India imports nearly 90% of its crude oil requirements. About two million barrels per day of this, out of 5.5 million, transits through the Strait of Hormuz.
India, the world’s third-largest oil importer and consumer, acquired about 5.5 million barrels of crude oil internationally. However, over the years, India has strategically shifted to import oil from more than 40 countries, more from Russia since 2022.
Though India does not buy any oil from Iran, but Hormuz is crucial for India as 40% of oil imports still passes through this waterway between Iran and Oman.
(With inputs from ANI)
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March 07, 2026, 08:38 IST
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