Crude Oil Price: Crude oil prices are on fire! Crude crosses $120 per barrel, a big threat to the world economy

Once again the threat of inflation is looming across the world. There is a huge rise in the prices of crude oil and Brent crude has crossed almost $ 120 per barrel. This level is considered to be the highest level in almost four years. The biggest reason behind this is the increasing tension between America and Iran and the ongoing military conflict in the Strait of Hormuz. Due to this crisis, there has been a huge impact on the global oil supply, due to which there is an atmosphere of panic in the market. Experts believe that if the situation does not improve soon, it will have a direct impact on the pockets of common people and economies around the world may come under pressure.

America-Iran tension became the biggest reason

The biggest reason for the rise in oil prices is the increasing conflict between America and Iran. America has increased naval pressure on Iran’s ports and has also intensified actions to stop oil tankers. At the same time, Iran has also given clear indications that it is not going to back down. This conflict between the two countries is now directly affecting the oil supply.

Crisis increased due to closure of Hormuz Strait

The Strait of Hormuz, one of the world’s most important oil routes, is almost closed. This route handles a large part of the global oil supply. Due to its closure, the movement of crude oil, gas and petroleum products has almost stopped. According to international agencies, this could become the biggest supply shock ever.

Huge shortage in supply, panic in the market

According to reports, the supply of about 1 billion barrels of oil in the market may be affected. Due to this, panic has increased in the global market. Traders believe that prices may go up further in the coming days, because the balance between supply and demand has deteriorated.

America’s strategy may further increase tension

America is now trying to seize oil tankers belonging to Iran and involve other countries also in this action. Apart from this, preparations are also being made to send advanced weapons to the Middle East. It is clear that this crisis is not going to end soon.

Impact on the world economy including India

This rise in oil prices will have a direct impact on countries like India, which import most of the crude oil needed. Prices of petrol and diesel may increase, which will further increase inflation. Besides, pressure on the rupee may also increase and there is a danger of the current account deficit also increasing.

Will prices increase further?

Experts say that if the tension between America and Iran continues and the Strait of Hormuz is not opened, then crude oil prices may go up to $ 130 per barrel. At present the market is going through a period of uncertainty and investors remain cautious.