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Israel-Iran Clash Lifts Oil Prices: Risks for India

14 June 20251 min read
INTERNATIONAL AFFAIRSIsrael-Iran ClashLifts Oil Prices:Risks for India14 June 2025safalsetu.com

Why in the news

The Israel-Iran escalation raised worries over oil supply and prices for India.

Key facts

  • Oil price: +8% in a single day.
  • Strait of Hormuz: 20% of global oil; exposed suppliers are Iraq, Saudi Arabia and the UAE.
  • Blocked Suez Canal and Red Sea access could push exporters to the Cape of Good Hope.

Impact

Higher import costs for India, which buys little oil directly from Iran, and costlier, slower export shipping.

Exam angle

  • Chokepoint: Strait of Hormuz; India’s crude import share: over 80%.

Test yourself

1. Roughly what share of global oil supply passes through the Strait of Hormuz, per the notes?

About 20% of global oil supply moves through Hormuz.

2. India imports what share of its crude oil requirement, according to the notes on the Iran-Israel conflict?

India imports over 80% of its crude needs.

3. If Suez and the Red Sea are blocked, Indian exporters may reroute ships via which route?

The notes cite the Cape of Good Hope detour.