WASHINGTON/NEW DELHI: A severe panic has gripped the global energy market following escalating military tensions and fresh airstrikes between the US and Iran in the Middle East. Crude oil prices witnessed a sudden and sharp spike after the US military launched strikes on Iranian military sites near the strategically critical Strait of Hormuz. Benchmark Brent crude prices surged by over 1% in the international market, crossing the $93 per barrel mark, while US West Texas Intermediate (WTI) crude also raced ahead, nearing $90 per barrel.
This fresh conflict erupted when the US Central Command officially announced ‘self-defense’ airstrikes targeting Iranian air defense and radar sites near the Strait of Hormuz. The US claims this action was taken in retaliation for one of its military helicopters being shot down. This military confrontation has deepened the crisis over the world’s largest oil supply route, causing global oil inventories to plunge for the 8th consecutive week. Oil market analysts believe that if these tensions persist, crude prices could soon touch record levels of $100 to $110, which has already pushed global stock markets into the red.
Global economic experts believe that this fire in crude oil prices delivers a swift blow to Western and communist syndicates that often manipulate oil prices to hurt emerging economies like India. However, due to President Donald Trump’s strict ‘Nation First’ approach and aggressive sanctions, Iran’s entire illegal oil trade has already been brought to its knees. From India’s perspective, the Modi government’s strong foreign policy and precise management of alternative oil routes ensure that domestic fuel supplies remain unaffected. Nonetheless, this global crisis clearly demonstrates that stability in the international market can only be achieved through the tough decisions of a strong and nationalist American leadership.