The Iran-Israel war has led to disruptions in oil supply, affecting gas prices worldwide, particularly in India.
Current Developments
As of March 10, 2026, the ongoing Iran-Israel war has significantly impacted global gas prices and supply chains, particularly in India. The conflict has effectively closed the Strait of Hormuz, a critical passage for oil shipments, leading to sharp fluctuations in crude oil prices.
Initially, Brent crude prices fell 17 percent to below $80 a barrel before rebounding to near $90. This volatility reflects market reactions to the perceived risks associated with the ongoing conflict. Chad Norville noted, “What we saw this week was the market briefly treating that risk as real and repricing supply disruption in earnest.” Meanwhile, US petroleum prices have risen about 17 percent since the start of the war.
The situation has raised alarms in India regarding a potential liquefied petroleum gas (LPG) crisis. With 90 percent of its LPG consumption met through imports, India faces a significant supply gap of 2 million tonnes. The Central government has invoked the Essential Commodities Act to ensure equitable distribution of LPG amid fears that restaurants in major cities like Chennai, Mumbai, and Bengaluru may shut down due to shortages.
In response to the crisis, the Indian government is securing 1 million tonnes of LPG from the United States. However, the National Restaurant Association of India has expressed concerns, stating, “As per articles [in the media], the government has clarified that there is no ban on the supply of commercial LPG cylinders for the restaurant industry… but the ground situation is different…”
Government Measures
Indian officials, including Chief Minister M.K. Stalin, have emphasized the need for the Union government to ensure that the LPG cylinder shortage does not adversely affect public services or commercial establishments. The government is also preparing for the arrival of 20 very large gas carriers expected to deliver LPG to Indian ports.
Despite these measures, uncertainties remain regarding the effectiveness of government interventions and the overall duration of the Iran-Israel war. Details remain unconfirmed.
The ongoing conflict continues to shape global energy markets, with significant implications for gas prices and supply stability. Stakeholders are closely monitoring developments as the situation evolves.
