Petrol and diesel prices today: Fuel rates in Delhi, Mumbai, Bengaluru amid stalled US-Iran talks on Hormuz

Petrol and diesel prices in major Indian cities remained unchanged on Monday, 17 August, as global crude oil prices hovered around $88.50 per barrel. The stability in fuel rates is attributed to state-run Oil Marketing Companies (OMCs) setting retail prices, which insulate consumers from fluctuations in the global energy market.

However, the lack of progress in US-Iran peace talks has halted oil tanker traffic through the strategic Strait of Hormuz since last week. The conflict between the two nations has escalated, with Israel striking Iran-backed Hezbollah in Lebanon, marking one of the deadliest days in months.

Shane Oliver, Chief Economist at AMP, stated that despite the ongoing impasse in Iran and Hormuz talks, oil prices are expected to remain within the $70-$100 range. However, he cautioned that the risk persists due to Iran's potential to restrict oil exports from the Middle East by 10%-15% if tensions persist, leading to higher oil prices as reserves deplete.

The US war against Iran has now entered its sixth month, while broader negotiations seem to be stalled. Talks between Iran and Oman on managing the Hormuz waterway have shown some progress, but doubts remain about the US agreeing to terms that would not restore free passage along the critical trade route, which once handled a fifth of the world's oil and liquefied natural gas each day.

Iran's Army Commander-in-Chief, Amir Hatami, has vowed to protect the strategic waterway with all possible means, emphasizing its significance as a "God-given geopolitical asset for the Iranian nation."