By Admin 
Share Market: The impact of America and Israel’s attacks on Iran and Tehran’s retaliation against it has been visible everywhere. On one hand, there has been an increase of about 10 percent in the prices of crude oil in the international markets. On the other hand, there are fears of a weak opening of the Indian stock market on Monday. The increasing tension in the Middle East due to the war between Iran-Israel and America is expected to have an impact on global risk sentiment.
deepening atmosphere of uncertainty
The news of the death of Iran’s supreme leader Ayatollah Ali Khamenei in Israeli attacks has further increased the uncertainty. Investors are scared of this. On Friday, the last trading day of last week, the Sensex fell 961.42 points or 1.17 percent and closed at 81287.19. At the same time, Nifty also closed at the level of 25178.65 with a decline of 317.90 points or 1.25 percent.
Investors were already troubled by Donald Trump’s threats regarding tariffs, the US Supreme Court considering tariffs illegal, fears regarding AI-related speculations, all these things. Now the war between America, Israel and Iran has increased uncertainty around the world. In such a situation, question marks have arisen regarding the supply of crude oil and the performance of the stock market.
Indian stock market under pressure
Experts believe that the current environment is expected to increase the pressure on the domestic stock market. At present, the Strait of Hormuz remains the biggest ‘hot spot’ of global economy and geopolitics because about 20 percent of the world’s oil supply passes through this narrow passage. If this route is closed due to increasing conflict between Iran and Israel, then oil prices may increase up to $ 100 per barrel.
It is expected to have a huge impact on India because 60 percent of India’s LPG imports and about 50 percent of its oil imports go through this route. In such a situation, any movement on this route will have an immediate and big macroeconomic impact. Additionally, the rise in oil prices means increased market risk as India imports more than 75 percent of its petroleum needs. Due to increasing instability at the economic and political level, there is a possibility of increase in inflation, increase in current account imbalance and impact on the rate curve of RBI.
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What was feared happened… Crude oil price increased by 10% in the global market, what will be the impact on India?