Hormuz shipping crisis threatens India’s growth as crude oil prices double
The Strait of Hormuz shipping crisis has led to a surge in crude oil prices, doubling to over $115/barrel, and is threatening India's growth. The crisis is causing disruptions to global energy flows, tightening supply, and raising risks to growth and inflation in India.
Disruptions to shipping through the Strait of Hormuz have choked global energy flows. Oil prices have surged to over $115/barrel after an attack by Yemen's Houthis. Ship transits have fallen significantly, constraining hydrocarbon movement and pushing up energy and logistics costs. This has led to higher import prices, supply disruptions, and rising logistics costs in India. The country's economic activity remained robust until February but early signs of moderation have emerged. India's government has approved a support package for exporters to offset logistics disruptions.
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