Washington: Tensions have escalated again in West Asia as the fragile ceasefire between the United States and Iran collapsed, triggering a fresh round of attacks and counterattacks. According to TV9 Bangla, this conflict has pushed crude oil prices up by over 6% in the last 24 hours, marking a nearly 10% increase within 72 hours. Just three days ago, crude oil was priced below $72 per barrel, but the current price has surged past $78.
International markets had begun stabilizing after recent fluctuations, and India was even signaling possible reductions in petrol and diesel prices this August. However, the renewed hostilities have reversed this trend abruptly. Brent crude oil prices have climbed to $78.80 per barrel, with intra-day trading witnessing prices above $80 before settling slightly lower. Meanwhile, the U.S. West Texas Intermediate (WTI) benchmark saw a 6.4% rise, reaching $75 per barrel.
Petrol and diesel prices in India have remained unchanged since May 25, after oil marketing companies (OMCs) raised petrol by ₹2.61 per liter and diesel by ₹2.71 per liter. Recently, India's Petroleum Minister Hardeep Singh Puri hinted at the possibility of price reductions, citing usage of stocks purchased at higher prices two months ago. He suggested that if international crude prices remain low for the next two to three months, consideration would be given to lowering retail fuel prices.
However, with the recent spike in crude prices driven by the Iran-US conflict, questions are mounting about whether petrol and diesel rates will increase again. Historically, during the previous Iran-US conflict, crude oil prices surged to $110 per barrel. Despite this, Indian oil marketing companies refrained from raising retail fuel prices immediately, incurring daily losses of approximately ₹1,500 crore. These losses were later compensated through price hikes.
Why this matters
Fluctuations in international crude oil prices directly impact retail fuel costs, affecting millions of consumers and the broader economy. Renewed geopolitical tensions in a critical oil-producing region threaten to disrupt supply stability and increase fuel expenses worldwide. For countries like India, which depend heavily on imported crude, these developments pose challenges for inflation control and economic planning.
As global oil markets remain volatile, policymakers and consumers alike will closely watch the developments between the U.S. and Iran, which have far-reaching implications beyond regional conflicts.
In summary, the escalation in the Iran-US conflict has triggered a sharp rise in crude oil prices, casting uncertainty over the near-term prospects of petrol and diesel pricing in India and globally.
