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Strait of Hormuz Blockade Risk Pushes Brent Crude Over $71/Barrel, Threatens 40% of India's Oil Imports

EconomyIntl. RelationsEnvironmentHIGH
Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
20 Feb 2026
~2 min
Source: Indian Express
Key Data:Over $71 per barrelOver 88% import dependencyOver 40% transit via HormuzAround 2 billion barrels annual imports~15 million barrels daily via Hormuz$2 billion import bill increase per $1 oil price rise
Bodies:US Energy Information Administration (EIA)INGCenter for Strategic and International Studies (CSIS)
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What This Article Covers

1.Brent crude prices surge over 12% to exceed $71/barrel, a six-month high, due to fears of US military action against Iran.

2.The Strait of Hormuz, handling 20% of global LNG and 1/5th of global petroleum, is a key risk; its blockade could push oil prices above $100/barrel.

3.Examiners will test India's energy security vulnerability, the strategic importance of global chokepoints, and the economic implications of oil price shocks.

The Big Picture
Prelims · HighMains · High

Escalating US-Iran tensions threaten global energy security by risking a blockade of the Strait of Hormuz, a critical chokepoint for oil. For India, which imports 88% of its crude and sees 40% transit this strait, a disruption could spike its import bill by ~$2 billion for every $1 increase in oil prices, impacting inflation and the current account.

Exam Lens

Quick Exam Facts From News

Current Brent Crude PriceOver $71 per barrel
India's Oil Import DependencyOver 88%
India's Oil Transit via HormuzOver 40%
India's Annual Oil ImportsAround 2 billion barrels
Daily Flow via Strait of Hormuz~15 million barrels of crude

1-Minute Revision

  • ›Current Brent Crude Price: Over $71 per barrel
  • ›India's Oil Import Dependency: Over 88%
  • ›Target this Data: Over 40% of India's crude oil imports transit the Strait of Hormuz.
  • ›Target this Nodal Body: US Energy Information Administration (EIA) - termed Hormuz the world's most important oil transit chokepoint.
  • ›Target this Geopolitical Point: The risk of conflict spillover involving Iran's proxies in Yemen threatening the Bab el-Mandeb strait.

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Q1Static LinkageEasy

Which US government agency is cited in the article as characterizing the Strait of Hormuz as the world's most important oil transit chokepoint?

Q2Statement-basedHard

Consider the following statements regarding the implications of the US-Iran tensions as discussed in the article:

1. A full blockade of the Strait of Hormuz by Iran is considered politically self-destructive as it could alienate key allies like China.

2. India imports over 88% of its crude oil requirement, making it the world's largest consumer of crude oil.

3. According to projections, a scenario where Iran directly attacks Arab Gulf oil facilities could lead to oil prices spiking higher than the $130 per barrel level seen in 2022.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what is the approximate increase in India's annual oil import bill for every $1 increase in the price of oil?

Q4Application/ImpactMedium

What is identified as a primary reason for oil market jitters due to potential US-Iran conflict, beyond the direct loss of Iranian oil?

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