New Delhi: Global oil prices are once again soaring in the face of a growing amount of tension over the Strait of Hormuz. Former US President Donald Trump has begun pressing for an international coalition to re-open the important sea route, which many oil tankers use to transport crude oil across the world.
The Strait of Hormuz is one of the most important oil shipping routes in the entire world. Almost 20 percent of the world’s oil flows through this narrow channel between Iran and Oman. To the distant consequence of the continuous tensions, and the military activity in the region, many shipping companies have become careful about sending their vessels by way of this route.
Trump has reportedly been attempting to unite a number of countries to ensure safe transportation of oil tankers. The idea is to develop a joint naval effort in which several countries protect the ships passing through the strait.
The recent war involving Iran has made the world’s markets nervous. Oil traders are afraid that if the strait stays blocked or unsafe, there will be a serious supply shortage. Whenever supply declines but demand remains high, prices tend to rise.
That is exactly what the world is witnessing now. Brent crude prices have already moved up, and many experts say prices could rise more if the situation does not improve soon.
Countries such as India, China and several European countries depend heavily on oil shipments, which must pass through this region. If it becomes challenging to transport, these countries may experience a rise in the cost of fuel.
Higher oil prices often have an impact on the common people as well. Petrol, diesel and aviation fuel are more expensive. This can cause increased transportation expenses, which will eventually increase the cost of many daily goods.
