The Middle East is currently facing a crisis that has shocked the global economy. The main cause of this tension is the closure of the Strait of Hormuz, an important maritime route through which a large share of the world’s oil and fertilisers is transported. With vessel movements halted, the world is witnessing a slow-burning energy crisis.
This is being experienced worldwide. The price of crude oil has increased to $112 a barrel. Also, gas prices have increased to $5 a gallon. This rise in transport prices is getting reflected in the cost of the goods. Food security is a huge issue, with fertilisers stuck in transit and farming costs rising.
Recently, the Prime Minister, Narendra Modi, addressed the Parliament and acknowledged the unprecedented economic and security challenges faced by the nation due to the crisis in West Asia. In this context, he said, the impact of the disruption in energy supply will be felt by the global economy in a lasting manner.
It looks like the only thing PM Modi wants to do is tell the country’s people to be ready for something similar to the last shutdown; therefore, the current crisis is as bad as the pandemic was in 2020.
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This similarity to the COVID-19 pandemic has also raised fears of a shutdown. While this event does not pose any biological threat, it might also be considered a resource-based closure. For India, this represents an important time in the country’s development direction as the nation prepares to tackle the impending resource limitations by ensuring enough energy resources for its population and maintaining the economic stability of India, regardless of future obstacles.
