Hormuz crisis adds $22 bn to India's fossil fuel import costs: CREA
In terms of economic impact, India's net additional cost across all fossil fuels was estimated at $14.4 billion, equivalent to 0.38 per cent of its GDP, or about 1.4 days of national income
The Hormuz crisis, triggered by US-Israeli strikes on Iran, has resulted in significant additional costs for fossil fuel importers, estimated at USD 330 billion over six months. This cost surge is the largest sustained oil price shock since the 1990 Gulf War, with Asian LNG prices averaging 75% above pre-war expectations, European LNG prices 60% above, diesel 59% above, and crude oil 35% above.
The EU, China, and India faced the highest extra costs, with the latter paying about twice as much relative to GDP compared to high-income countries. Clean power generation since 2020 has helped offset the crisis, saving importing countries an estimated USD 36 billion in avoided coal, gas, and oil imports during the first five months of the crisis.
Brief written by urgent.news from Hellenic Shipping News's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
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