Hormuz Strait Tensions Soar: US-Iran Standoff Threatens Global Oil Economy, India at Risk

• The Strait of Hormuz, a critical energy lifeline, sees 31% of the world's seaborne crude oil pass through it daily.
• Rising US-Iran tensions, fueled by domestic protests in Iran and potential US action, threaten to disrupt this vital route.
• A blockage or disruption could cause crude oil prices to skyrocket by $10-$20 per barrel, shaking the global energy economy.
• While a full closure is a low-probability threat due to US Navy patrols, even temporary disruptions would increase oil value chain costs and global market volatility.
• India is highly vulnerable due to its 80% oil import dependency via Hormuz, leading to potential petrol/diesel price hikes, inflation, and stock market shocks.

Why It Matters: US-Iran tensions over the Strait of Hormuz pose a significant threat to global oil supply and prices, severely impacting oil-dependent nations like India.