The ongoing war in Iran has disrupted the broader West Asian region and the world’s most important oil shipping route - the Strait of Hormuz, sending crude oil prices flying high and instigating fears of global recession. The two key oil benchmarks, Brent and West Texas Intermediate (WTI), have surged up to 20 per cent since February 27, when the United States and Israel launched joint military operations against Iran.
The May Brent oil futures contract has surged nearly 18 per cent over the past five trading sessions to $85.50 per barrel. The April WTI crude oil futures contract has rallied around 20 per cent over the same duration to $80.60 per barrel.
On March 5, Iran’s Islamic Revolutionary Guard Corps (IRGC) announced that the Strait of Hormuz has seen water traffic fall dramatically since the war began, and is now closed only to vessels from the US, Israel, Europe and other Western-aligned countries.
“We have previously stated that, under international law and international resolutions, in wartime the Islamic Republic of Iran has the right to control passage through the Strait of Hormuz,” the IRGC said, according to Iran’s state-run Islamic Republic of Iran Broadcasting (IRIB) television.
The IRGC also warned that any ships linked to the US, Israel, Europe or their allies would face attack if they are detected in the strait.
Meanwhile, in a latest development, the US Department of the Treasury issued a temporary 30-day waiver on economic sanctions against Russia, allowing the delivery and sale of Russian oil currently stranded at sea to India. In a post on X, on March 5, US Treasury Secretary Scott Bessent said that the 30-day waiver is intended "to enable oil to keep flowing into the global market" amid severe disruption in the West Asian region, and "alleviate pressure caused by Iran's attempt to take global energy hostage."
However, Bessent added that "this deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea.”
Nearly Half Of India’s Oil Imports Pass Through Hormuz
India imports nearly 88 per cent of its crude oil needs. Of this, about half of these shipments pass through the Strait of Hormuz. According to data from S&P Global Commodities at Sea, in 2025, around 41 per cent of India’s crude imports passed through the Strait of Hormuz.
This share increased in early 2026 to nearly 52 per cent of India’s roughly 5 million barrels per day (bpd) crude imports, as domestic refiners reduced their purchases of Russian oil as a precondition for the India-US trade deal to happen.
Will Petrol And Diesel Prices Go Up In India?
India has enough crude oil and petroleum product stocks to deal with any short-term supply disruptions caused by the ongoing conflict in the West Asia, the government said in a statement on March 3. The government said India has strengthened its energy security by widening its sources of crude oil imports over the years. As a result, domestic energy companies can now procure oil from routes that do not pass through the Strait of Hormuz, reducing the risk of supply disruptions.
"India has ensured both availability and affordability of energy for its population by diversifying its sources," the statement from the Ministry of Petroleum and Natural Gas said. "Indian energy companies now have access to energy supplies that are not routed through the Strait of Hormuz. Such cargoes will remain available and help mitigate supplies that may be temporarily affected en route through the Strait of Hormuz."
In a separate statement issued on March 2, the Ministry of Petroleum said the government is closely monitoring the situation and will ensure that domestic supplies of petroleum products remain uninterrupted. "India would ensure uninterrupted domestic supplies of petroleum products and take all necessary measures to keep these products affordable for end-users."
The government also said it is holding discussions with state-owned refiners to prepare a strategy that would help maintain steady supplies in the domestic market if the conflict disrupts global oil flows.
Despite the recent spike in global crude oil prices, sources told PTI that the government continues to follow a calibrated pricing strategy. Under this approach, oil marketing companies are allowed to expand their margins when crude prices are lower, while consumers are largely shielded during periods of rising global oil rates.
Petrol And Diesel Prices Today
Retail petrol and diesel prices in India have largely remained unchanged since May 2022. Since then, oil marketing companies have mostly kept pump prices steady, even as global crude oil prices have fluctuated during the period.
According to data released by the Petroleum Planning & Analysis Cell (PPAC), in New Delhi, petrol was priced at Rs 94.77 per litre, while diesel stood at Rs 87.67 per litre. In Mumbai, petrol was retailing at Rs 103.54 per litre and diesel at Rs 90.03 per litre.
In Chennai, petrol was priced at Rs 100.84 per litre and diesel at Rs 92.39 per litre. Meanwhile, in Kolkata, petrol was selling at Rs 105.45 per litre, while diesel was priced at Rs 92.02 per litre, according to PPAC data.
