Tanker traffic through the Strait of Hormuz has dropped sharply as attacks on commercial vessels intensify, raising concerns over global oil supplies and transportation costs. 

Tanker arrivals fell to just four during the week ended October 11, compared with nine in the previous week. The disruption could put further pressure on energy-importing countries, including India.

Over the two weeks from September 28 to October 11, tanker arrivals declined to 10 from 13 in the preceding fortnight, a drop of around 23%. The Strait of Hormuz connects the Persian Gulf with the Arabian Sea and serves as a key route for global oil shipments.

Nearly two dozen commercial vessels were attacked in the two weeks leading up to October 11. The escalation has prompted shipping operators to reconsider sailing through the region, increasing the risk of delays and disruptions to energy deliveries.

India is particularly exposed to disruptions because it relies heavily on imported crude oil. The country’s crude basket rose to $122.28 per barrel, compared with $116.09 in September and $90.19 in August, according to the report.

Higher crude prices can increase fuel costs, widen India’s import bill and add pressure on inflation. Businesses in sectors such as aviation, paints, chemicals and logistics may also face higher operating expenses if energy and freight costs remain elevated.

The Strait of Hormuz is a critical global energy corridor, and sustained disruption could affect oil availability, shipping insurance and tanker rates. Although crude prices eased on October 15 as markets assessed possible measures to improve oil transportation, attacks on ships continued to support supply concerns.

The outlook will depend on whether tanker movements recover and tensions ease. For India, stable energy supplies and lower crude prices will be important for controlling inflation and limiting pressure on the trade balance.

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