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Tezzbuzz Desk- The effect of increasing geopolitical tension in West Asia is now clearly visible on the global oil market. Crude oil prices have once again increased and the price of Brent crude has crossed $ 90 per barrel. After the end of the 60-day ceasefire period between America and Iran, concerns about supply have increased in the market.

Every major movement in crude oil prices is also important for India, because the country fulfills a large part of its needs through imports. In such a situation, if oil prices remain high for a long time, it may affect the country's import bill, transportation costs and inflation.

Brent crude crossed 90 dollars

Brent crude futures in the global market with a slight increase of 7 cents or 0.08 percent. $90.94 per barrel Reached. At the same time, an increase of 53 cents or 0.63 percent was recorded in American WTI crude and its price $85.03 per barrel doing. Both major crude benchmarks hit multi-week highs in their recent trading sessions. The eyes of investors in the market are now on the situation in West Asia and the upcoming diplomatic talks.

America-Iran tension increased again

The biggest reason behind the rise in oil prices is believed to be the increasing tension between America and Iran. The 60-day ceasefire between the two countries ended on August 17. The purpose of this agreement was to give time to both the countries to find a permanent solution through negotiations. But no new agreement could be agreed upon until the stipulated period ended. After this, the fear increased in the market that tension in the area may increase further. In case of increased tension, there is a risk of oil production and its global supply being affected. This is why investors are cautious about the possible further rise in crude prices.

Market also keeps an eye on Hormuz Strait

One of the biggest concerns regarding oil supply in West Asia strait of hormuz Is. This sea route is extremely important for global oil trade. There is a possibility of any kind of military activity or security problem in the area affecting the oil supply through this route. As soon as such fears increase in the market, there is an immediate impact on crude prices. According to ING analysts, the US stance and concerns over the security of the Strait of Hormuz have also affected the oil market sentiment.

What will be the impact on India?

The continuous rise in crude oil prices may be a matter of concern for India. India imports large quantities of crude oil to meet its domestic needs. If oil becomes expensive in the international market, the country's import bill may increase. Apart from this, the effect of expensive crude oil is not limited to petrol and diesel only. If the cost of transportation and freight increases, its impact can reach from food items to many other everyday items. If oil prices remain high for a long time, it increase in inflationary pressure Suspicion may also arise.

What to look forward to?

At present, the direction of the global oil market will mainly depend on US-Iran relations, the security situation in West Asia and activities to the Strait of Hormuz.

If tensions ease and supplies remain normal, pressure on prices may ease. But in case of further increase in tension, crude oil prices may see a further rise. In such a situation, in the coming days, along with the crude prices, the market will also keep an eye on the fuel prices in India, inflation and the household budget of the common people.