The strikes come as crude prices are already elevated amid concerns over disruptions to Gulf supplies. Brent crude settled at $96.28 a barrel on Friday, keeping the benchmark within striking distance of $100.
The bigger concern for oil-importing economies is the Strait of Hormuz, through which a substantial share of global oil and LNG shipments normally passes. Any prolonged disruption would raise not only crude prices but also freight and war-risk insurance costs.
India, which imports nearly 90% of its crude requirement, remains particularly exposed to a sustained rise in international oil prices, as per industry observers. The government has said around 70% of India’s current crude imports are sourced from outside the Strait of Hormuz, providing some cushion against a direct disruption.
However, higher global prices would still increase India’s overall energy bill and put pressure on the rupee through higher demand for dollars. Refiners could also face increased freight and insurance costs if vessels avoid high-risk routes.
For Indian businesses, the impact could extend beyond fuel. Airlines, logistics operators, petrochemical companies, tyre manufacturers and other energy-intensive industries could see costs rise if the conflict keeps crude prices elevated. “The key risk for India, therefore, is no longer confined to crude crossing $100 a barrel. A prolonged disruption to Gulf shipping could simultaneously push up oil, freight and insurance costs, creating a wider inflation and corporate-margin challenge,” stated an industry observer requesting anonymity.
