Crude Surge Squeezes Global Fuel Markets, Fuels Inflation Fears Worldwide

• Global petrol and diesel markets face renewed stress as crude oil prices surge amid escalating conflict in West Asia, with Brent crude above $110-112 per barrel.
• PM Narendra Modi warned of a global fuel crisis, linking it to geopolitical instability and continued conflict-driven disruption since the Covid-19 pandemic.
• The immediate trigger is a spike in crude oil prices due to concerns over supply routes in West Asia, especially the Strait of Hormuz.
• India, an import-dependent economy, is better prepared due to stronger global partnerships and domestic resilience, with stable retail fuel prices maintained through fiscal and supply-side measures.
• Sustained high oil prices could lead to broader economic consequences, including inflation, making central banks cautious about interest rate cuts.