Image for representation purposes only Iran has announced that the Strait of Hormuz is completely closed to commercial shipping, and if any ship attempts to transit the waterway, it will be targeted. The statement mentions that the closure is in response to “continued hostile actions by the United States,” including its attacks on critical infrastructure like surveillance sites along the critical waterway. The U.S Central Command has refuted Iranian claims and said that commercial ships continue to sail through Hormuz. In a social media post, the Central Command also wrote, “No U.S. warships have been struck.” However, after the announcement, global oil prices surged by more than 2%. The energy crisis has hit every country hard, especially Asian buyers who depend on the Middle East for most of their oil and natural gas supplies. India imports 88% of its crude oil and over 60% of its LPG, with roughly half of these supplies transiting through the Strait of Hormuz. Analysts estimate that every $10 increase in crude oil prices directly spikes Indian inflation and slows economic growth. India, in the past few weeks, saw a surge in the prices of LPG, which is imported from the Gulf, prices of petrol and diesel, milk, vegetables, packaged food, soaps and detergents, plastic goods whose manufacturing depends on petroleum-based raw materials and also electronics and household appliances. India maintains oil reserves and is also mitigating risks by diversifying supply for Africa and Latin America, but a prolonged standoff will affect the country as its reserves deplete.