Hormuz shock: What a USD 100 oil scenario means for India

Key Highlights

• Insurers have withdrawn cover, effectively halting tanker movements.
• Also read | Crude oil prices jump over 7% as Israel–Iran war tensions shake global markets Dual supply shock hits global oil market Wood Mackenzie said the shutdown creates a “dual supply shock”, as current exports through the strait are suspended while additional OPEC+ volumes and most spare capacity, typically used to stabilise the market, remain inaccessible.
• Oil prices have already reacted sharply.
• Brent crude climbed more than 8 per cent to USD 78.72 a barrel, while US-traded crude rose about 7.6 per cent to USD 72.20, after at least three vessels were attacked near the strait.
• “The key question is when vessels re-establish export flows,” said Alan Gelder, senior vice president of refining, chemicals and oil markets at Wood Mackenzie.