Crude oil surpasses $100 per barrel mark:Impact of rising tensions between US and Iran; petrol, diesel and LPG may become more expensive

Rising tensions between the United States and Iran have once again pushed crude oil prices above $100 per barrel. If crude oil prices continue to rise in this manner, petrol, diesel, and LPG prices could increase. Today, September 9, during early trading in Asian and European markets, Brent crude surged 2.25% in the international market, crossing $100 per barrel. This is the first time Brent crude has reached this level since July 24. US destroys 5 Iranian crude oil tankers The main reason for this latest rise in oil prices is the new military clashes that have erupted between the United States and Iran. In a statement issued late Tuesday night, the US Central Command said that the American military had destroyed five Iranian oil tankers. The United States claims that it took this action in response to an attack by Iran’s Islamic Revolutionary Guard Corps, which used a ballistic missile to target a US Navy warship. Closure of the Strait of Hormuz is a major factor The biggest reason for the rise in crude oil prices is the closure of the Strait of Hormuz. This waterway, which is about 167 km long, connects the Persian Gulf with the Arabian Sea. Due to the war involving Iran, this route is no longer safe. In view of the danger, no oil tanker is passing through it. Twenty percent of the world’s total petroleum passes through this route. Countries such as Saudi Arabia, Iraq, and Kuwait also depend on it for their exports. India imports 50% of its crude oil requirements and 54% of its LNG through this route. Iran itself exports via this route. Crude oil became 22% more expensive in one month Crude oil prices have risen by 22% over the past month. On August 10, Brent crude, or crude oil, was priced at $82 per barrel; it is now at $100. Government companies had raised petrol and diesel prices in May In May, IOC, BPCL, and HPCL increased the prices of both petrol and diesel by a total of ₹7.50 per litre each in installments, citing expensive international crude oil. More than 90% of the country’s over 100,000 petrol pumps are controlled by these three government-owned companies.