Hormuz Crisis Slams Global Fossil Fuel Markets, India Suffers $22 Billion Loss

The Hormuz energy crisis has had far-reaching effects on global fossil fuel markets. India, one of the world's largest importers of oil and gas, has seen its costs skyrocket due to the conflict. According to a report by the Centre for Research on Energy and Clean Air (CREA), India incurred an estimated $22 billion in additional fossil-fuel import costs between March and August 2026.

When measured against economic impact, India's net additional cost across fossil fuels was estimated at $14.4 billion, equivalent to 0.38 per cent of the country's GDP. This makes India the second-most affected importing country after China in terms of gross additional import costs.

The analysis also found that the European Union suffered the highest additional cost, at $78 billion, followed by China at $35 billion. Crude oil accounted for the largest portion of the additional bill, with a total of $164.1 billion. Brent crude prices climbed to nearly twice their pre-strike level in the weeks following the strikes and have averaged about 38 per cent above the pre-strike level since then.