State-controlled fuel retailers said a litre of petrol in Delhi would now cost 97.77 rupees, while diesel prices rose to 90.67 rupees per litre.The increase follows a sharp rise in international crude prices after disruption to shipping through the Strait of Hormuz triggered supply concerns across global energy markets.

Oil prices surged above $120 per barrel before easing to around $100-$105 as markets assessed the impact of the U.S.-Israeli conflict involving Iran.Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation, which together operate more than 90% of India’s roughly 103,000 fuel stations, typically align retail fuel price revisions simultaneously.

India had remained among the few major economies that had not raised domestic retail fuel prices despite sustained volatility in international crude markets.

The latest adjustment is expected to increase transportation and logistics costs across sectors and could add pressure to inflation in Asia’s third-largest economy, where fuel prices have significant downstream effects on food, manufacturing and consumer expenses.

The move also reflects mounting financial strain on state-run fuel retailers, which have absorbed part of the higher import costs in recent months as geopolitical instability disrupted global oil supplies.

India imports more than 80% of its crude oil requirements, making the country particularly vulnerable to external energy shocks and disruptions in major maritime trade routes such as the Strait of Hormuz.

Indian shares were expected to open cautiously on Friday as higher crude prices and ongoing concerns over shipping risks weighed on investor sentiment.

Bank of Japan data released Friday showed the corporate goods price index (CGPI), which measures prices companies charge each other for goods and services, rose 4.9% in April from a year earlier, sharply exceeding market forecasts for a 3.0% increase.
The annual increase was the fastest since May 2023 and accelerated significantly from March’s 2.9% rise.

The figures underscored the growing impact of higher import costs on Japan’s economy following disruptions to oil shipments through the Strait of Hormuz amid the Iran conflict. Japan remains heavily dependent on imported energy, particularly crude oil from the Middle East.

The yen-denominated import price index jumped 17.5% in April from a year earlier, marking the steepest increase since December 2022 and reflecting both elevated global energy prices and the weaker yen’s effect on import costs.

On a monthly basis, wholesale prices rose 2.3% in April after increasing 1.0% in March, the data showed.
Petroleum and coal product prices climbed 5.3% from a year earlier as crude oil and jet fuel costs rose, while chemical goods prices surged 9.2%, the strongest increase since September 2022. Naphtha prices soared 79.4%, according to the report.

The data came a day after a Bank of Japan policymaker called for raising interest rates “at the earliest stage possible” to contain inflationary pressures stemming from higher fuel costs and supply disruptions linked to the Middle East conflict.

Economists said the breadth of price increases would be closely monitored by policymakers assessing whether inflation pressures are becoming more entrenched across the broader economy.

“If price rises are contained to oil-related goods, there is little need for the BOJ to respond,” said Masato Koike, senior economist at Sompo Institute Plus.
“But if they broaden to a wide range of goods, the BOJ will likely have to raise rates,” he said.

The inflation surge adds to pressure on the central bank as it seeks to normalize monetary policy after years of ultra-low interest rates and stimulus measures aimed at reviving growth and inflation.

The proposed 650-mile pipeline, often referred to by critics as “Keystone Light” because of its similarities to the scrapped Keystone XL line, would transport up to 550,000 barrels of crude oil per day from Saskatchewan into northeastern Montana before extending through Montana and Wyoming to connect with existing U.S. pipeline infrastructure.

Trump signed the permit in the Oval Office, authorizing the line to cross the U.S.-Canada border and allowing the transport of crude oil as well as petroleum products including gasoline, diesel, kerosene and liquefied petroleum gas.“Slightly different from the last administration. They wouldn’t sign a pipeline deal.

And we have pipelines going up,” Trump said after approving the project.At full capacity, the pipeline would carry roughly two-thirds the volume planned for Keystone XL, which was partially constructed before former President Joe Biden revoked its permit in January 2021 on his first day in office, citing climate concerns.

Trump had approved Keystone XL during his first term, but the project became a flashpoint in North American energy politics after Biden’s reversal angered Canadian officials and Alberta’s provincial government, which had invested more than $1 billion in the venture.

Unlike Keystone XL, the Bridger Pipeline Expansion would not cross Native American reservations, a key point of contention in past pipeline disputes. Company officials said more than 70% of the route would be built within existing pipeline corridors and about 80% would cross private land.

Bridger Pipeline LLC said the line would transport several grades of crude, including oil from Canada’s oil sands region, for refining or export in the United States.The project still requires additional state and federal environmental approvals before construction can begin. Company officials said they expect construction to start in 2027, with completion targeted for late 2028 or early 2029, potentially before Trump leaves office in January 2029.

Environmental groups have already signaled opposition, citing the risk of spills and the broader climate implications of expanding fossil fuel infrastructure.“The biggest concern we see right now is the concern inherent in all pipeline projects which is the risk of spills,” said Jenny Harbine, an attorney with environmental law group Earthjustice.

“Pipelines rupture and leak. It’s just a fact of pipelines.”Groups opposing the project include the Montana Environmental Information Center and WildEarth Guardians.Bridger Pipeline and subsidiaries of parent company True Companies have faced scrutiny over previous major spills, including more than 50,000 gallons of crude oil released into Montana’s Yellowstone River in 2015, contaminating a city’s drinking water supply, and a 2016 North Dakota spill of more than 600,000 gallons that affected the Little Missouri River and a tributary.

Subsidiaries of True Companies later agreed to pay a $12.5 million civil penalty to settle a federal lawsuit related to the Montana and North Dakota incidents. A separate 45,000-gallon diesel spill occurred in Wyoming in 2022.Company spokesperson Bill Salvin said Bridger has since introduced an AI-based leak detection system designed to accelerate incident response and plans to place pipeline sections 30 to 40 feet beneath major rivers including the Yellowstone and Missouri to reduce spill risks.

“We designed the pipeline with integrity and safety in mind,” Salvin said, adding that emergency response systems were in place in the event of a leak.Casper, Wyoming-based Bridger operates more than 3,700 miles of gathering and transmission pipelines across North Dakota, Montana and Wyoming.

The approval marks another step in Trump’s broader effort to expand domestic and cross-border fossil fuel infrastructure as part of his second-term energy agenda, reversing several climate-focused restrictions imposed under Biden.

The announcement was made through the state-run WAM news agency, which said the decision reflects the country’s changing economic priorities and expanding domestic energy ambitions.“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” the government said in a statement.

The UAE did not provide further details on how the move would affect its crude production policy or its broader cooperation with OPEC+, the wider alliance of oil-producing nations led by Saudi Arabia and Russia.

The decision comes at a time of heightened volatility in global energy markets, with oil prices rising sharply amid continued tensions surrounding the Iran war and concerns over supply routes through the Strait of Hormuz, a critical channel for global crude shipments.

The UAE has in recent years expanded its oil production capacity while also investing heavily in natural gas, renewables and low-carbon energy technologies as part of its broader diversification strategy.

Its departure from OPEC could reshape internal dynamics within the producer group, where production targets and output discipline have often been subjects of negotiation among member states.

OPEC, headquartered in Vienna, was founded in 1960 and remains one of the world’s most influential oil alliances, coordinating output policies among major exporters to stabilize prices and manage market supply.

The UAE has been one of the organization’s key Gulf members and among its largest producers, making its exit one of the most significant institutional changes for the cartel in recent years.

Markets and analysts are expected to closely watch whether Abu Dhabi maintains coordination with OPEC+ informally or pursues a more independent production strategy after its formal withdrawal takes effect.

Iran’s Khatam al-Anbiya central military command said the vessel was en route from China when it came under attack, warning that Iranian forces would respond. A spokesperson described the incident as “armed piracy” and said retaliation would follow.U.S. President Donald Trump said earlier that a U.S.

Navy destroyer intercepted the ship, identified as the MV Touska, after it failed to comply with repeated warnings while attempting to breach a U.S.-imposed maritime blockade on Iranian ports.Trump said the vessel was disabled after the USS Spruance fired on its engine room and that U.S. Marines had taken control of the ship.

He added that the Touska was subject to U.S. Treasury sanctions due to a history of alleged illegal activity.The U.S. Central Command said the destroyer issued warnings over a six-hour period before using force to stop the vessel, marking the first such interception since the blockade began last week.

It added that U.S. forces have turned back at least 25 commercial vessels attempting to navigate the restricted waters.The confrontation comes amid heightened instability in the Strait of Hormuz, a critical route for global oil and gas shipments, which has remained largely closed since the outbreak of the U.S.-Israel conflict with Iran seven weeks ago.

Iran briefly reopened the strait on Friday following a ceasefire in Lebanon but shut it again within 24 hours, citing continued U.S. naval restrictions. The uncertainty has disrupted maritime traffic, with vessel tracking data showing tankers reversing course in recent days.Energy analysts warned that the renewed tensions could drive volatility in oil markets after a brief easing late last week.

Amrita Sen, founder of Energy Aspects, said developments over the weekend underscored the fragility of the situation and the risk of further escalation.

The incident adds pressure on diplomatic efforts to stabilize the region, with markets and governments closely monitoring the standoff for signs of either de-escalation or further conflict.

Iran’s Revolutionary Guards said ships should avoid the main navigation zone and instead follow designated entry and exit paths to reduce the risk of collision with naval mines.

“All ships intending to transit the Strait of Hormuz are hereby notified they should take alternative routes for traffic,” the statement said, emphasizing maritime safety concerns.

The announcement follows Tehran’s agreement to temporarily reopen the strategic strait as part of a two-week truce reached with Washington. The ceasefire was agreed late Tuesday, shortly before a deadline set by U.S. President Donald Trump for Iran to comply with demands related to the reopening of the passage.

The Strait of Hormuz is a critical global energy corridor, through which roughly one-fifth of the world’s oil supply typically passes.

Iran had effectively restricted traffic through the route since early March, contributing to a surge in global energy prices and heightening concerns over supply disruptions.

The designation of alternative routes signals continued operational risks in the waterway despite the ceasefire, underlining the fragile security environment and the potential for further disruption to global shipping and energy markets.

Willie Walsh, director general of the International Air Transport Association, told reporters in Singapore that while crude prices had fallen below $100 per barrel following a U.S.-Iran ceasefire announcement, jet fuel costs were likely to remain elevated due to constraints on refining output.

“If it were to reopen and remain open, I think it will still take a period of months to get back to where supply needs to be given the disruption to the refining capacity in the Middle East,” Walsh said, adding that the region is critical to global supply of refined products beyond aviation fuel.

The Strait of Hormuz, which carries about a fifth of the world’s oil trade, has been heavily disrupted during the recent conflict, squeezing fuel availability and driving up costs across the aviation sector.

Airlines in Asia have responded by cutting flights, carrying additional fuel from origin airports and adding refueling stops, measures that have increased operational costs for carriers already dealing with a sharp rise in jet fuel prices.

The impact has been most acute in import-dependent markets such as Vietnam, Myanmar and Pakistan, where supply constraints have tightened further after China and Thailand halted jet fuel exports and South Korea capped shipments at previous levels.

Walsh said a resumption of crude flows could encourage exporters such as China and South Korea to restart shipments of refined products, easing pressure on the market over time.

However, he noted that higher refinery margins, known as crack spreads, would be needed to incentivize increased jet fuel production.

“There is capacity available once we get the crude oil flowing, but it’ll take a little bit of time,” Walsh said.

A fuel reservoir at Primorsk caught fire after a drone strike, Alexander Drozdenko, governor of the Leningrad region, said on Telegram. Separately, Ust-Luga operations were halted due to a drone alert in the surrounding area, the sources said.

Both ports, located in Russia’s northwestern Leningrad region, handle the bulk of the country’s seaborne crude oil and refined fuel exports from its western outlets, making them critical nodes in Russia’s energy supply chain.

The suspensions underscore growing vulnerabilities in Russia’s energy infrastructure as drone attacks increasingly target logistics and export facilities. While the extent of damage and the expected duration of the halt were not immediately clear, any prolonged disruption could tighten export availability from Baltic routes.

Transneft, Russia’s state-controlled oil pipeline monopoly that operates both Primorsk and Ust-Luga, did not immediately respond to a request for comment.

Primorsk and Ust-Luga serve as key gateways for Russian crude and petroleum products destined for international markets, particularly in Europe and beyond via maritime routes. Interruptions at these ports can affect shipping schedules, storage logistics and broader supply balances.

The incidents come amid heightened geopolitical tensions and a pattern of attacks on energy infrastructure, raising concerns over the resilience of supply networks and potential knock-on effects in global oil markets.