Brent crude prices surge over 60% since Iran war, India faces supply concerns

Brent crude prices have surged sharply by over 60 per cent since the onset of the US-Iran-Israel conflict, rising to around USD 112 per barrel on Monday from approximately USD 70 per barrel earlier, reflecting severe disruptions in global energy supply.

In the past 30 days alone, crude prices have jumped nearly 56 per cent, underlining the intensity of the ongoing supply shock triggered by escalating tensions in West Asia.

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The spike in oil prices comes as the conflict has disrupted key global supply routes, particularly through the Strait of Hormuz, a critical artery for international crude trade. The crisis has also impacted global liquefied natural gas (LNG) flows, further tightening energy markets.

The situation has worsened following reported attacks on energy infrastructure in Qatar, where Iranian strikes have damaged key facilities, affecting nearly 17 per cent of the country’s LNG export capacity.

This poses a significant risk for India, which relies on Qatar for about 47 per cent of its gas imports.

According to a report by Systematix Research, India’s crude oil imports witnessed a sharp decline in early March due to disruptions in the region. The report noted that import volumes dropped drastically to just 1.9 million barrels in the week ended March 6, compared to 25 million barrels per week in February and 35 million barrels per week in March.

The decline has been attributed primarily to reduced supply from the Middle East amid ongoing geopolitical tensions. Key suppliers, including Saudi Arabia, Iraq, and the UAE, have reported significant drops in export volumes.

“Saudi Arabia’s exports fell to 26 million barrels and 12 million barrels in the first and second week of March, respectively, compared to weekly averages of 42 million and 33 million barrels in February,” the report added.

The continued disruption in supply chains, coupled with damage to critical energy infrastructure, has heightened concerns over energy availability and rising prices, especially for import-dependent economies like India.