West Asia Conflict Pushes Crude Oil Prices Over $95 per Barrel, Impacting India's Energy Security

The recent escalation of hostilities in West Asia has pushed crude oil prices to over $95 per barrel, sparking concerns about India's energy security and economic growth. The country imports nearly 90% of its oil requirements, and a rise in global crude prices could increase the annual import bill by ₹18,000 crore.

The conflict between the US and Iran has led to a sharp escalation in prices over the past week, with Brent crude trading between $88-$97 per barrel. India's dependence on imported oil means that price volatility affects its economy significantly, particularly given the country's large import bill.

India has diversified its oil imports over the years to reduce reliance on West Asian suppliers. However, alternative sources such as Russia and the US come with higher costs due to longer routes and denser crude. India's petroleum consumption is also rising, with petrol demand increasing by 7.88% in August compared to last year.