Crude Oil and Gas Prices Crash as Strait of Hormuz Reopens, Is This a Lifeline for India
Crude Oil and Gas Prices Crash as Strait of Hormuz Reopens: A good news has emerged for the global energy market, and particularly for the Indian economy. Following a blockade lasting a full 49 days, Iran on Friday reopened the 'Strait of Hormuz' to all commercial vessels. Iran's Foreign Minister, Abbas Araqchi, announced that the movement of ships through this maritime route would remain fully restored for the remainder of the ceasefire period.
Prices Plunge
Immediately following the announcement of the Strait of Hormuz's reopening, a historic decline in oil and gas prices was recorded in the international market. The global crude oil benchmark, Brent Crude, fell by approximately 11% to $88.80 per barrel, while the US benchmark, West Texas Intermediate (WTI), also tumbled 11.4% to reach $83.89. Additionally, Europe's benchmark gas contract witnessed a decline of nearly 8.5%.
Nearly 50% of India's total crude oil imports pass through Hormuz
For India, the reopening of the Strait of Hormuz is nothing short of a boon, as 40–50% of the country's total crude oil imports—amounting to approximately 2.5–2.7 million barrels per day—pass through this very route. Thus the opening of the Strait is a lifeline for India.
Due to the conflict and subsequent blockade, India's oil imports had plummeted by 15% in March 2026, raising fears of a looming crisis regarding energy security. The supply of Liquefied Petroleum Gas (LPG) for cooking was particularly severely affected, having dropped from 90% to a mere 40%.
General public to receive relief from inflation
Economic experts estimate that every $10 drop in crude oil prices could reduce India's annual oil import bill by $1.5–2 billion. Following the current decline, there is a strong likelihood that the upward pressure on the prices of petrol, diesel, and cooking gas within the country will ease, potentially offering the general public some relief from inflation.
Meanwhile, US President Donald Trump has also offered positive signals, stating that a concrete agreement to end the conflict with Iran could be reached soon. Although no specific timeframe has been provided, his remarks have raised hopes for stability in the energy market.