New Delhi, April 27: The ongoing tensions between the United States and Iran continue to pose a significant threat to global oil prices. Despite ongoing diplomatic efforts, former Major General and defense expert Dhruv Katoch warns that if the situation remains unchanged, a surge in oil prices is inevitable. In an exclusive interview, he discussed the potential repercussions if the standoff over the Strait of Hormuz persists.
Katoch asserted that current conditions indicate Iran must engage in negotiations. He highlighted technical reasons for this necessity. “Regarding the Strait of Hormuz, the U.S. has imposed a blockade, which will have serious implications. Iran has historically taxed ships passing through the strait. The blockade means Iran cannot sell the oil it produces, leading to increased storage levels. If this continues for 10 to 15 days or even a month, storage capacities will be exceeded, potentially forcing oil wells to shut down. However, restarting these wells could present significant technical challenges,” he explained.
The expert emphasized that Iran will have to consider negotiations. “The blockade by the U.S. may be effective, but we must recognize that a quick resolution is unlikely. It could take a month or even three for the situation to improve. Rest assured, pressure from the Strait of Hormuz will increase,” he added.
Katoch also warned that the repercussions of these tensions will not only affect India but the entire world. “Currently, we are importing crude oil from Russia, but the U.S. has imposed sanctions on that. The trading system is under U.S. control since the dominant currency for trade is the dollar. If we attempt to import oil from Russia despite sanctions in the future, we may face difficulties trading in dollars. This could significantly impact our trade with the global market,” he stated.
He further noted that rising energy prices will affect not just India, but also China, Japan, Korea, and the entire Global South. “The impact will extend to the U.S. and Europe as well. This is a global issue, and no government will be able to prevent it. We can expect an increase in oil prices,” he concluded.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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