The Strait of Hormuz sits at the centre of the world’s hydrocarbon trade. In 2024, around 20 million barrels per day of oil moved through the strait, equivalent to roughly 20 percent of global petroleum liquids consumption, making it one of the world’s most critical oil transit chokepoints. A disruption here interrupts vessel movement, raises freight, delays cargo scheduling, and weakens confidence in forward supply. Liquefied Petroleum Gas (LPG) traffic through the corridor has been severely disrupted due to the current crisis in the Middle East, with cargo movements stalling and importers scrambling for replacements. For a country like India, where a large share of a welfare-sensitive fuel depends on seaborne imports, the global shock has quickly become a domestic allocation problem.

This paper aims to analyze the effects of LPG shortages on the financial market, focusing on the advantages of financial markets, the benefits of LPG in daily life, and the challenges faced by financial markets during an LPG crisis. For this purpose we use some references from government sites, tracking oil companies share volatility, evaluating Government Interventions, analyzing academic journal as a secondary resource and Industries Reports.