India's Crude Oil Prices Soar 11% Amid Red Sea Disruptions

India's crude oil prices have reached their highest level in two months, fueled by disruptions in the Red Sea and Strait of Hormuz. The Indian basket of crude oil jumped 11% in a day to $103.33 per barrel on Thursday.

The price surge is due to the closure of the Strait of Hormuz and Houthi militia targeting shipping vessels in the Red Sea, according to reports. This has led to an increase in international FOB (free-on-board) prices of petrol and diesel, which could result in under-recoveries for oil marketing companies if retail pump prices remain unchanged.

India imports nearly 90% of its crude oil requirement, so retail petrol and diesel prices are linked to international product prices. The global benchmark Brent crude price crossed the $100-per-barrel mark on Thursday but eased marginally to $97.08 by Friday evening.