Oil prices soared to a four-year high on Thursday, with Brent crude reaching $126 per barrel, driven by concerns over a potential prolonged blockade of the Strait of Hormuz. U.S. President Donald Trump indicated that negotiations with Iran regarding a nuclear deal would influence the blockade's duration. The spike in prices poses a serious threat to global economic stability, particularly for countries like India, which imports 90% of its oil. India's oil import bill is projected to be around $122 billion in fiscal year 2026, and every $1 increase in oil prices adds approximately ₹16,000 crore (roughly $1.93 billion USD) to import costs. In response, the U.S. is exploring ways to boost domestic oil production to mitigate the impact of rising prices. Meanwhile, state-run oil marketing companies in India are incurring losses on fuel sales, with a revenue loss of around ₹20 per litre for petrol and ₹100 per litre for diesel. The Indian rupee also weakened against the dollar, closing at 94.92, as markets reacted to the crude price surge and U.S. Federal Reserve policies.