Is India next after Australia..? People beware..!!
As Iran's parliament has decided and approved the closure of the Strait of Hormuz, which is important for 20% of the world's oil and gas exports, it is estimated that if this happens, the prices of petrol and diesel in the world will skyrocket. In this situation, australia has sounded the first alarm bell. It has been announced that if iran closes the Strait of Hormuz as planned, the price of petrol in australia could rise to 2.50 Australian dollars per liter. Although crude oil is produced in australia, it is traded at the price set in the international market. Not only this, it has been announced that there is a risk of a sharp increase in electricity and gas prices in the country. The reason is that 10 percent of the country's total electricity generation is generated through gas. This threat will have a major impact on the global energy market and increase inflation in the world.
The Strait of Hormuz is a major route for oil and gas exports from Middle Eastern countries to the world. About 20% of the crude oil and gas traded globally is sent through this route. According to reports, the Iranian parliament has decided to close such an important route. However, it is not yet clear whether the Iranian military will implement this. If the Strait of Hormuz is closed, there will be a shortage in global energy supply and prices will rise. If we take india, india has increased its crude oil purchases from the united states and russia since the beginning of June. Similarly, the gulf countries and saudi arabia have additional demand. Due to this, the risk of price hikes in india is low. In addition, there are predictions that this price hike will not have a major impact since the central government has imposed high taxes on petrol and diesel. A similar situation happened when russia invaded ukraine in 2022. Western sanctions on Russian oil and gas caused a global energy shortage. Due to this, oil prices rose sharply and caused all european countries to spike. Now, Iran's decision has created the risk of raising international energy prices.