Oil Prices Top $106 as Trump Pushes for Naval Coalition to Reopen Strait of Hormuz

Oil Prices Surge Past $106 a Barrel

Global oil prices continue to climb as the Iran crisis deepens. Brent crude topped $106 a barrel on Sunday, rising as much as 3% in a single session. As of early Monday, Brent stood at $104.15 per barrel — up more than 40% since the US-Israel strikes on Iran began on February 28.

The International Energy Agency has called this "the largest disruption to global energy supplies in history", with Iran effectively shutting down one of the world's most critical maritime chokepoints.

Iran Closes the Strait of Hormuz

The Strait of Hormuz, a narrow waterway between Iran and Oman, is the world's most important oil transit route. About one-fifth of all global oil supply passes through this strait — roughly 21 million barrels per day under normal conditions.

Since the war began, Iran has brought shipping to a near standstill. The numbers tell a grim story:

• Historical average: 138 ship transits per day
• Current level: Fewer than 5 ships daily
• 16 commercial vessels have been attacked in the region

Iran's new supreme leader, Mojtaba Khamenei, has vowed to keep the strait closed, while another top Tehran official warned that oil prices could shoot beyond $200 per barrel if the conflict escalates further.

Trump Calls for Naval Coalition

US President Donald Trump has called on several countries to deploy warships and help reopen the critical waterway. He specifically named China, Japan, France, and the United Kingdom to send their navies to secure the strait.

Trump also issued a warning to NATO, saying the alliance faces a "very bad" future if his proposal receives no response or a negative one.

However, the response has been lukewarm at best. None of the named countries have publicly committed to deploying naval forces. Analysts say the proposal is fraught with risks — any military confrontation in such a narrow waterway could cause an environmental and economic catastrophe.

Trump administration officials have indicated that warships won't deploy until Iran's military capacity is "further degraded," though operations are expected to begin soon.

What This Means for India

India, which imports over 85% of its crude oil, is particularly vulnerable to this crisis. A significant portion of India's oil imports transit through the Strait of Hormuz, including supplies from Saudi Arabia, Iraq, Kuwait, and the UAE.

With Brent crude above $100, Indian consumers can expect:

• Higher petrol and diesel prices in the coming weeks
• Increased costs for LPG cylinders and cooking gas
• A wider current account deficit, putting pressure on the rupee
• Potential inflationary pressure across the economy as transport costs rise

The Indian government has been diversifying its oil sources in recent years, but the Hormuz crisis underscores just how dependent the country remains on Middle Eastern energy. India's strategic petroleum reserves — currently enough for about 9.5 days of consumption — provide only a limited buffer.

Global Markets on Edge

The oil price surge has sent shockwaves through global financial markets. Stock indices in Asia opened lower on Monday, with energy-importing economies bearing the brunt. The Indian rupee, already under pressure, could face further depreciation if prices continue their upward trajectory.

Analysts remain divided on whether Trump's naval coalition plan can work. The Strait of Hormuz is only 33 kilometres wide at its narrowest point, making it extremely difficult to secure against a determined adversary like Iran. Any miscalculation could trigger an even bigger crisis.