USD/INR Rises as Iran Shuts Strategic Strait of Hormuz

Key Facts

Amid escalating fears of global energy supply disruptions, the USD/INR pair resumed its upward trend, breaking through critical resistance levels. This price movement followed Iran's announcement of closing the Strait of Hormuz, a vital maritime chokepoint for global oil trade. According to reports, this development intensified selling pressure on the Indian Rupee due to concerns over surging energy import costs.

India remains one of the world's largest oil importers, relying on foreign markets for over 80% of its crude requirements, per international energy data. The closure of the Strait of Hormuz, through which approximately 20% of global oil consumption passes, is driving investors toward safe-haven assets like the US Dollar. Compared to other Asian peers, currencies tied to oil imports have seen similar declines against the strengthening greenback.

Looking ahead, traders are monitoring the EIA Weekly Petroleum Report scheduled for July 8, 2026, to gauge the impact on global supply.