Relevance: GS II (International Relations) & GS III (Energy Security & Economy) | Source: The Hindu

1. What is the News?

War-like strikes in the Middle East have targeted major energy sites, including the South Pars gas field (Iran) and several oil refineries.

The Result: Global crude oil prices jumped to $114 per barrel.

The Impact on India: Indian stock markets (Sensex) crashed by over 3% in a single day because high oil prices make everything more expensive in India.

2. Geography Check: Where is the Trouble?

Knowing these locations is important for your map-based questions:

South Pars / North Dome Field: This is the world’s largest natural gas field. It is not owned by just one country; it is shared between Iran and Qatar.

Strait of Hormuz: A tiny but mighty water passage. Nearly 20% of the world’s oil travels through here. If this gets blocked, global oil supplies stop.

3. How it Hits Your Pocket: “Imported Inflation”

India buys (imports) more than 80% of its oil from other countries.

When global oil prices rise, the cost of transporting fruits, vegetables, and goods inside India also goes up.

This is called Imported Inflation—when high prices of things we buy from abroad (like oil) cause prices to rise for everyone in India.

4. India’s Smart Move: Strategic Autonomy

Even though the situation is tense, India is talking directly to Iran to ensure our 22 cargo ships can pass safely through the sea.

This is a great example of Strategic Autonomy: India makes its own decisions and talks to all sides (US, Israel, and Iran) just to protect its own national interests and energy supply.

The “UPSC Trap”

The “Ownership” Trap: UPSC might say South Pars belongs only to Iran. Incorrect. It is shared with Qatar.

The “Inflation” Trap: They might say inflation in India is only caused by local factors (like bad monsoons). Incorrect. A big reason for inflation in India is often high international oil prices (Imported Inflation).

UPSC Value Box

Key Term	Simple Meaning
Strategic Autonomy	India’s policy of staying independent and not joining any one “side” or military alliance.
Chokepoint	A narrow sea route (like Hormuz) that is very easy to block but very important for global trade.

Q. With reference to global energy geography and India’s economy, consider the following statements:

The South Pars Gas Field, the world’s largest natural gas field, is exclusively owned by Iran.
The Strait of Hormuz is the main passage for oil tankers traveling from the Persian Gulf to the open ocean.
‘Imported Inflation’ in India occurs when high international prices of essential imports (like crude oil) cause domestic prices to rise.

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3

Correct Answer: (b)