Crude Oil Price Spikes As Tension Escalates In Middle East

by GoNews Desk 2 weeks ago Views 689
Crude Oil Price Spikes As Tension Escalates In Mid
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After the killing of Iran’s chief commander General Qasem Soleimani in a US airstrike, war clouds are hovering over the Middle East. Following retaliatory action by Iran, the price of crude oil is steadily increasing.

According to Brent Crude, an organisation that fixes the rate of crude oil, in just five days, there has been a rise of about 8% in the cost of crude oil. On January 3, before the US attack, the cost of crude oil was $66.35 per barrel, which has now increased to $71.11 per barrel. This means that in just five days, there has been a spike of more than $5 per barrel in the cost of crude oil.

Also Read: Air India Reroutes Flights Over Iranian Airspace. Diversions To Increase Flying Time

According to another organisation -- West Texas Intermediate -- after the attack on January 3, crude oil prices increased from $62.90 per barrel to $64.94 per barrel. 

According to experts, if the likelihood of war in the Middle East is not averted, then in the coming days, crude oil prices could increase further and if prices rise, its impact will be felt directly in India.

After US restrictions were imposed, India reduced oil imports from Iran. In the year 2017-18, India imported 22.59 million tonnes of crude oil from Iran, while in the year 2018-19, India imported 23.9 million tonnes of crude oil from Iran.

On January 3, in an American air strike outside Iraq’s Baghdad airport, Iran’s Quds Force commander General Qasem Soleimani and atleast seven others had been killed.

In retaliatory action, Iran has launched missiles at American military installations in Iraq. According to Iranian media, atleast 80 American soldiers have been killed in this attack. Iran’s supreme leader Ayatollah Ali Khamenei has called this attack a slap on the face of America.