Strait of Hormuz Tensions: Iran's Warning to US Sparks Global Oil Price Fears

• Iran temporarily closed the Strait of Hormuz for military exercises, signaling a warning to the US amidst escalating tensions.
• The Strait of Hormuz is a critical chokepoint, through which 20% of the world's oil and natural gas passes daily.
• Closure of the strait would lead to a global oil shortage, potentially causing petrol, diesel, and other petroleum product prices to skyrocket.
• Iran's move is seen as a direct response to US threats regarding its nuclear program, with Iran warning it would not stand by idly if attacked.
• A prolonged closure could increase oil prices from $90 to $150 per barrel, impacting major economies like China, Europe, and India, and potentially raising petrol prices in India by Rs 5-15 per liter.