Oil Near $100 and LPG Fears Grip India as Iran Threatens Strait of Hormuz, Global Markets Slide

The global energy market entered another volatile phase on March 13, 2026, as crude oil prices hovered near the psychologically critical level of $100 per barrel. Investors around the world reacted sharply after Iran’s leadership called for blocking the Strait of Hormuz, one of the world’s most vital oil shipping routes.

The escalating conflict involving the United States, Israel and Iran has now entered its third week, creating widespread uncertainty across energy markets, financial systems and domestic fuel supplies in many countries. While governments attempt to reassure citizens, rising oil prices, panic buying and political tensions are fueling concerns about the stability of global energy supply chains.

India, one of the world’s largest energy importers, has been forced to take emergency measures to manage LPG distribution and secure alternative oil supplies as fears of shortages ripple across the country.

Oil markets have remained extremely sensitive to developments in the Middle East conflict. On March 13, Brent crude traded close to $99.85 per barrel while U.S. benchmark West Texas Intermediate crude hovered near $95.05 per barrel.

The surge in prices reflects growing fears that the Strait of Hormuz could become a flashpoint in the war. The narrow waterway between Iran and Oman carries a significant share of the world’s oil exports. Any disruption in the region could severely restrict global energy flows.

Iran’s new Supreme Leader Mojtaba Khamenei recently warned that Iran would target the Strait and open additional fronts against the United States and Israel, escalating tensions further. His statement triggered immediate reactions in global financial markets.

Stock markets across Asia fell sharply, with Japan’s Nikkei index declining by more than 1 percent and South Korean technology stocks sliding nearly 2 percent. Taiwan equities also weakened as investors turned toward safer assets such as the U.S. dollar.

Financial analysts warn that if the conflict prolongs or the shipping route is disrupted, oil prices could rise further, increasing inflationary pressure on economies worldwide.

In an attempt to stabilize energy markets, the United States administration under President Donald Trump announced a temporary authorization allowing countries to purchase Russian oil that is currently stranded at sea.

The 30 day license was introduced as oil prices surged following U.S. and Israeli strikes on Iran earlier in the conflict. Washington hopes the measure will ease immediate supply shortages and help cool rising prices.

The waiver follows a similar exception previously granted to India, which allowed the country to continue importing discounted Russian crude despite sanctions.

Russia welcomed the move. Kirill Dmitriev, Russia’s economic envoy, said the global energy system cannot function without Russian oil supply.

According to Dmitriev, the U.S. decision effectively acknowledges that global energy markets require Russian participation to maintain stability during times of crisis.

Amid rising tensions in the Middle East, the Indian government has emphasized that the country’s crude oil supply remains secure despite disruptions.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri told Parliament that India had significantly diversified its energy imports in recent years. Before the current crisis, about 45 percent of India’s crude imports passed through the Strait of Hormuz.

However, the government has successfully increased alternative sourcing.

Puri stated that nearly 70 percent of India’s crude imports now come from routes outside the Hormuz corridor. India currently imports crude oil from around 40 countries, compared to only 27 sources during 2006 and 2007.

According to the minister, diplomatic outreach by Prime Minister Narendra Modi has helped secure sufficient supplies to compensate for any potential disruptions caused by the conflict.

Puri described the situation as one of the most severe global energy disruptions in modern history but insisted that India remains prepared.

Despite government assurances, anxiety among consumers has led to widespread panic buying of cooking appliances.

Across several Indian cities, households have rushed to purchase electric induction stoves amid fears that LPG cylinder refills could become difficult or more expensive. Online retailers and local stores have reported rapidly declining stock levels for induction cooktops.

India is the world’s second largest importer of liquefied petroleum gas, making it particularly vulnerable to disruptions in global supply chains.

Authorities have invoked emergency powers to boost LPG availability for households. However, supply for commercial users such as restaurants, hostels and canteens has tightened significantly.

The surge in consumer demand has also put pressure on booking systems. Customers of major public sector oil companies including Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited reported difficulty placing refill orders as systems struggled to handle the sudden spike in bookings.

Industry sources attribute the issue primarily to panic booking rather than an actual collapse of supply.

State governments across India have begun implementing emergency monitoring mechanisms to ensure that LPG supplies remain stable and accessible.

In Maharashtra, authorities have established control rooms and district level committees to track LPG distribution. Officials from the food supply department, police and oil companies will monitor daily supply movements and coordinate responses if shortages appear.

The government also announced that essential services will receive priority access to LPG cylinders. Hospitals, government hostels, school kitchens, mid day meal programs and social welfare institutions will be supplied first in case of any disruptions.

Similarly, the West Bengal government has issued a standard operating procedure to manage LPG distribution and maintain critical services during the crisis.

These measures are designed to prevent panic buying, hoarding and black market activity that often accompany energy shortages.

Authorities have already begun enforcement actions against illegal LPG storage and misuse.

In Madhya Pradesh’s Chhatarpur district, officials seized 38 domestic LPG cylinders during raids targeting suspected black marketing operations. The cylinders had reportedly been stored illegally and were being diverted for commercial purposes.

District administrations across several states have warned that strict action will be taken against individuals attempting to hoard or misuse domestic LPG cylinders.

Officials say preventing black market activity is essential to maintaining fair distribution during periods of heightened demand.

The developing situation has also sparked political debate in India.

Opposition leaders including Rahul Gandhi and Priyanka Gandhi Vadra staged protests in the Parliament complex over reports of commercial LPG shortages. They demanded greater transparency from the government regarding the availability of cooking gas.

Rahul Gandhi criticized the government’s messaging on the issue, accusing the leadership of downplaying the seriousness of the crisis.

Prime Minister Narendra Modi responded by warning against panic and misinformation. Speaking at a summit in New Delhi, he said attempts to create fear among citizens could harm national interests during a global crisis.

Modi emphasized that India is committed to safeguarding energy security and urged state governments to closely monitor hoarders and black marketers.

While domestic supplies remain a priority, industrial sectors are already feeling the effects of reduced gas allocations.

In Gujarat’s ceramic manufacturing hub of Morbi, a significant number of gas fired kilns have reportedly shut down due to limited fuel supply. Textile industries in Ludhiana are experiencing similar challenges.

The government has reduced natural gas allocations to certain industrial sectors to between 65 percent and 80 percent of their contracted volumes in order to prioritize household consumption.

Energy analysts say such adjustments may continue if the Middle East conflict persists or intensifies.

The ongoing war in West Asia has created one of the most complex energy challenges in recent decades.

Investors are increasingly concerned that a prolonged conflict could push oil prices even higher, reigniting global inflation at a time when many economies were hoping for interest rate cuts.

Financial markets have responded cautiously, with many investors moving toward safer assets while reducing exposure to riskier equities.

If the Strait of Hormuz remains under threat, analysts warn that the ripple effects could extend far beyond the energy sector, affecting transportation, manufacturing and food prices worldwide.

For now, governments and markets alike remain on edge as geopolitical tensions continue to shape the future of the global energy system.