By The Press of Asia | March 5, 2026

Global crude oil prices surged by up to 9 percent as the US-Israel war on Iran entered its fifth day, triggering fears of a prolonged energy crisis. Brent crude hit the upper $79-80 range after tanker traffic through the critical Strait of Hormuz was effectively halted.

Oil Market Reaction The Strait of Hormuz, through which approximately 21% of the world’s oil supply passes, has seen tanker traffic come to a near-standstill following Iranian drone and missile attacks on Gulf shipping lanes. This immediate supply disruption sent shockwaves through global energy markets. Brent crude was trading at approximately $72.87 per barrel before the war started, rising nearly 9% within 48 hours of the conflict beginning.

India’s Vulnerability India is one of the world’s largest crude oil importers, bringing in over 85% of its oil requirements. With prices surging, India faces significant economic headwinds including higher fuel prices for consumers, increased inflation, and greater pressure on the rupee. The Indian rupee has already weakened against the US dollar as investors moved to safe-haven assets.

Sensex Falls Sharply India’s stock markets reacted sharply to the oil price surge. The BSE Sensex fell to 79,116 points on March 4, losing 1.40% in a single session, while the Nifty 50 declined to close at 25,178.65. Foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 4,630 crore, while domestic institutional investors (DIIs) bought equities worth Rs 24,312 crore.

Petrol & Diesel Prices If crude prices sustain above $80 per barrel, Indian consumers could face petrol and diesel price hikes. Currently, fuel prices in India have remained stable due to government management of the Oil Marketing Companies (OMCs). However, economists warn that sustained high crude prices will put pressure on the government’s fiscal deficit and could force price revisions.

Global Impact Beyond India, the oil price spike is affecting economies worldwide. European nations, already grappling with energy security concerns, face higher heating and industrial costs. Emerging economies with dollar-denominated oil imports face currency pressures. Analysts at major financial institutions warn that a prolonged conflict could push Brent crude above $100 per barrel, potentially triggering a global recession. The International Energy Agency (IEA) has called for member nations to release strategic petroleum reserves to stabilize markets.