Saturday, March 29, 2025
New Delhi: March 20, 2026
As the Iran-Israel war enters its 21st day since beginning on February 28, its economic repercussions are being felt across the globe. This conflict has severely disrupted the global energy supply chain and major maritime routes. The hardest hit is the Strait of Hormuz, where vessel traffic has plummeted. While an average of 83 ships passed through daily during the same period last year, that number has dropped to just 6 ships per day as of early March.
The disruptions in the Strait of Hormuz have led to a direct 10% increase in natural gas prices. From February 27 to mid-March, gas prices rose from $2.9 to $3.2 per MMBtu.
| Country | Petrol Increase | Diesel Increase |
| Australia | 32% | 40% |
| USA | 24% | 33% |
| Singapore | 21% | 34% |
| Spain | 19% | – |
Note: In countries like India and Brazil, prices currently remain stable due to government controls; however, pressure may mount if the war continues long-term.
Skyrocketing Aviation Turbine Fuel (ATF) prices have dealt a heavy blow to airlines. Indian carriers have already implemented fuel surcharge hikes:
IndiGo: ₹425 increase
Air India: ₹399 increase
Akasa Air: Increase ranging from ₹199 to ₹1,300
Domestic cooking gas prices show a significant gap between nations. While prices are highest in Greece ($223.4 per barrel equivalent) and Israel ($202.6), India remains in the mid-range at $103.1. Producing nations like Saudi Arabia still maintain a relatively relieved position at approximately ₹46.2.
If this war persists, the blockade of the Strait of Hormuz will drive global inflation to record highs, severely impacting the pockets of the common man. Experts believe this crisis is not limited to oil alone but poses a massive challenge to the entire global supply chain.
