Oil prices moved higher as uncertainty surrounding the reopening of the Strait of Hormuz increased. Iran has linked the restoration of normal shipping through the critical waterway to concessions from the United States, creating fresh concerns over the security of global energy supplies.
The development is particularly important for India, one of the world’s major crude-oil importers. A prolonged disruption could increase India’s import bill and put pressure on inflation, the rupee and fuel-dependent industries. Markets are therefore watching diplomatic developments as closely as actual oil-price movements.
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