Israel Iran Tensions: Wall Street was shaken on Friday after the attack on Iran by Israel. A strong attacks were carried out by Israel by targeting Tehran’s important establishments to prevent Iran from making nuclear weapons. In response to this, Iran was also reversed, after which where the voice of Israeli siren was heard, there was echo of explosions in Jerusalem.

Due to the attacks and counters between Israel and Iran on each other, on the one hand, there has been a fear in the minds of global investors, on the other hand, there has been a lot of tension in the Middle East.

Increased tension in the middle east

It is believed that if there are attacks on each other in this way, then the supply of crude oil can be interrupted from the Middle East. This is the reason that as soon as Israel attacked Iran, after that the price of crude oil climbed 7 percent.

Due to the increase in fuel prices, there is a decline in stocks of airlines companies. United Airlines has come to 4.4 percent, American Airlines 4.9 percent and Deelt Airlines 3.8 percent. However, the defense stocks including RTX Corporation have been seen to be fast since the Israeli attack.

Energy stocks boom

Energy sector is visible in enthusiasm due to Israeli attack on Iran. Diamondback energy has shown a jump of 3.7 percent and Exone of about 2 percent. While the S&P 500 index slipped 1.13 percent on Friday. Nasdaq was also 1.30 percent and Dow Jones Industrial Average was down 1.79 percent.

The market experts believe that if all this continues in this way, then the situation can be serious. Ilyas Hadad, a senior market analyst of Brown Barsha Heriman, says that if this situation continues, we can get caught in a completely military struggle.

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Israel Iran Tensions: Israel attacked Iran’s important nuclear installations. After this, tremendous tension has increased in the Middle East countries. It is believed that the way the tension between the two countries is increasing, it will not only affect West Asia but India will also not be untouched by it. The reason for this is the Gulf of Hormuz. It is between Iran and Oman. It connects the Gulf of Persia to the Arabian Sea and Oman’s Gulf. In addition, it is a sensitive and an important path.

Hormus Gulf of Gully Oil Supply

The bay of this hormus can also be gauged from the fact that about 20 percent of the global oil supply passes through this path. Along with this, this is the only sea route for the Middle East oil producing countries, such as Iran, Iraq, Saudi Arabia, Qatar and UAE, so that they transport oil to the world market.

In such a situation, if the problem arises here, then the price of oil will go to the seventh sky. The supply chain will stop and the energy needs of the countries including India depend on it will have a direct impact.

What is the effect on India

The most important thing is that it can become a big danger for India, because India does about two -thirds of oil rectangles through this path. Apart from this, about half of LNG is also imported through this route.

In such a situation, if this path is closed, then India will have to find other routes immediately, which will create more costs and logistics challenges. India now has the option to consider other sources of energy and increase its reserve in view of the possibilities of increasing costs, so that such challenges can be faced in the coming time.

Oil price is predicted to increase

Brokerage firm JP Morger warned that if the struggle increases, then in that case the price of oil can increase to $ 120. This can also increase inflation and the current fiscal deficit of India. Also, everything will become expensive by increasing the price of oil.

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