Global crude oil prices experienced a dramatic surge with Brent crude climbing 5% to $87.72 per barrel and US West Texas Intermediate crude futures rising 5.1% to $82.13 per barrel. According to Reuters, both benchmarks recorded their strongest percentage gains since July 29, driven by fresh demands from Iran and the US that cast doubt on prospects of reopening the Strait of Hormuz. The continued uncertainty around the Strait of Hormuz has been the primary factor driving crude prices up, with Iran indicating that the US must lift sanctions on Tehran and meet other conditions before the Strait of Hormuz can be fully reopened. As per Bloomberg chief market analyst Tim Waterer, traders have been conditioned by the on-again, off-again nature of the negotiations and are waiting for tangible evidence before further unwinding the risk premium. However, recent analysis suggests that massive demand destruction, non-Gulf supply growth, alternative export routes, and strategic inventory management have successfully cushioned major import-dependent economies like India from the full impact of these geopolitical tensions.
Asian oil companies have maintained fuel price stability despite global crude oil volatility. CPC Corp, Taiwan announced on Saturday that it would leave domestic retail gasoline and diesel prices unchanged this week, marking the second consecutive week that CPC maintained its domestic fuel prices at the same levels. Similarly, Formosa Petrochemical Corp also said it would keep fuel prices unchanged this week. The announcements reflect the companies' strategy to maintain price stability for consumers during periods of market uncertainty. In Taiwan, retail gasoline prices this week would remain at NT$30.5 (US$0.94), NT$32.0 and NT$34.0 per liter for 92, 95 and 98-octane unleaded gasoline respectively at CPC and Formosa stations, while premium diesel prices would stay at NT$29.3 per liter at CPC stations and NT$29.1 per liter at Formosa pumps.
Despite crude oil prices surging to $87.72 per barrel, petrol and diesel prices across India remained unchanged on August 11, 2026. As reported by The Economic Times, state-run oil marketing companies kept the pump prices the same despite the surge in global crude oil prices, continuing to absorb higher input costs rather than passing them on immediately to consumers. This decision reflects the companies' strategy to maintain price stability for consumers during periods of market volatility. Latest data shows petrol prices range from ₹102.12 per litre in Delhi to ₹115.73 per litre in Hyderabad, while diesel prices vary from ₹95.20 per litre in Delhi to ₹103.82 per litre in Hyderabad. According to The Hindu BusinessLine, gradual domestic fuel price adjustments have shielded India's headline inflation from global crude shocks, with regulated gasoline costs rising modestly from mid-May, peaking in late June below early-2025 levels before decreasing. The government's response focused on containing inflation while limiting pressure on public finances through fuel tax adjustments, measured retail price changes, and strict subsidy cost management.
The current oil shock has not triggered broad-based inflation in India, with the transmission of this shock to domestic inflation having been relatively contained according to The Hindu BusinessLine. India's 90% import dependence historically leaves it vulnerable to market disruptions, but the current supply shock hasn't moved crude prices to an extreme level. The government's strategy involved combining fuel tax adjustments, measured retail price changes, targeted support, and strict subsidy cost management, successfully cushioning the economy from international price surges. Supply growth outside the Gulf has provided an additional cushion, with higher output from non-OPEC+ producers projected to grow by about 0.6 mb/d in 2026, led by gains in Brazil, the US, Canada, and Argentina. Alternative export routes and greater shipping flexibility have reduced the market impact through measures including pipeline systems that bypass the Strait of Hormuz and shipping arrangements such as ship-to-ship transfers in the Gulf of Oman.
