The Iran war has come to seriously hurt the world, mainly in terms of oil supplies following the closure of the Strait of Hormuz, an important maritime route along the West Asia region. For a nation that imports some 90 per cent of its crude oil for the refineries and meets 60 per cent of the LPG demand, as also much of the LNG demand through supplies majorly from the Gulf region, the unfolding scenario could eventually turn critical. The central government has stated that it has strong reserves to meet the requirements of nearly two months. This is some comfort even as US President Donald Trump is not in a mood for an early end to the conflict. Unlike Saddam Hussein’s Iraq, nothing goes to show yet that Iran would accept defeat in the immediate future. Trump would not be satisfied with anything less than a regime change and installation of a pro-US power edifice there. The clergy that runs Iran has already zeroed in on a new leader in place of the deceased Supreme Leader Ayatollah Ali Khamenei, namely his son Mojtaba Khamenei, and Iran’s strong military is engaged in a robust resistance to the joint US-Israeli offensive. With the United Nations not having the capacity to cry a halt, and both Russia and China being tentative, the conflict could go on for an indefinite period. The present phase of the Ukraine war is about four years in the running.
Under the circumstances, it’s natural that traders take advantage of the gathering gloom in India too. As the hoarding and black marketing of fuel, mainly LPG cylinders, have started in some cities, hotels, eateries and households are bound to suffer. The government has announced that it maintains a strategic underground petroleum reserve of nearly five million tonnes. Officials also explain that India has, as part of its energy diplomacy, buys crude from as many as 40 countries across six continents now – and that it is not dependent only on supplies that pass through the Strait of Hormuz. India has also increased its Russian crude oil procurement. All these must suffice to tide over the present war-related crisis in the near future. Overall, fuel stations could meet the requirements of motorists and public transport, but the prices seem to be showing an upward trend. LPG-refill supplies are hit in some cities and this scenario could worsen due mainly to the greed of traders to take advantage of the situation.
The aviation sector remains largely hit by the war. Worse, airlines are in a mood to increase their fares, citing a rise in aviation fuel prices as a consequence of the war. Jet fuel prices have climbed from $90 per barrel before the war up to $200 per barrel now, which could be bad news for air travellers. Prices of several products meant for the domestic sector across the Gulf region have also seen a sharp rise in recent days. Its echo could be felt here too in multiple ways. Any war is bad news for all, especially so in the present largely inter-connected world. The earlier the Iran war ends, the better for all.
