Tensions between Iran and Israel have escalated, raising fears of a wider regional conflict with global economic implications, particularly in energy markets. As a key oil producer and the current OPEC Conference President, Iran plays a pivotal role. Any disruption, such as a blockade of the Strait of Hormuz, could destabilise supplies and push crude oil prices sharply higher. Oil has already surged by about $10 per barrel, and a prolonged war could drive it past $100, stoking global inflation.According to ClearView Energy Partners, in markets without fuel subsidies, a $10-per-barrel rise in crude oil typically raises petrol prices by 7 cents, or roughly ₹6 per litre. In extreme cases such as the closure of the Strait, this could go up by 27 cents, or ₹23. At present, the shipping lanes remain open, but Iran has threatened to lay naval mines if the United States enters the conflict.
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