Oil prices rose on Tuesday as traders worried about possible disruptions to shipping through the Strait of Hormuz. The narrow waterway carries a large share of the world’s crude exports.

Brent crude moved higher in early trade as geopolitical tensions kept buyers on edge. Analysts said any blockage of the strait would send prices sharply up and hit importing nations hard.

India is watching the situation closely. The country imported 4.84 million barrels of oil a day in September, up 9 per cent from August, as refiners stocked up.

Higher crude prices widen India’s import bill and put pressure on the rupee. Fuel retailers and the government are tracking the trend for its effect on inflation.

Energy analysts said prices could stay volatile in the coming days. Much will depend on whether tensions around the strait ease or escalate further.

The strait between Iran and Oman handles about a fifth of the world’s seaborne oil trade. Even brief threats to shipping there have pushed prices higher in past years.