Know what impact the Iran-Israel war can have on India?

The joint air strikes on Iran by Israel and America have raised tensions in the Middle East to their peak. Israeli Defense Minister Israel Katz described it as a ‘pre-emptive attack’, while US President Donald Trump announced ‘major combat operations’. There are reports of explosions in many cities including Tehran, Qom, Isfahan. Iran has also started retaliatory action. Iran has fired more than 30 ballistic missiles at Israel. Meanwhile, experts believe that if this war escalates, it could have a deep impact on India’s economy, energy security, trade and strategic interests.

Fear of sharp rise in crude oil prices

India is dependent on imports for 80-85% of its oil needs. Among these, the share coming from the Gulf region (Saudi Arabia, Iraq, UAE) is large. Millions of barrels of oil pass through the Strait of Hormuz every day, which is a significant part of the global oil trade. If Iran retaliated by attacking this route, supplies could be disrupted. Brent crude prices have already reached around $67. At the same time, there is a possibility of additional increase in the latest attacks that took place today. If this war prolongs, the cost of petrol, diesel, LPG and transportation may increase.

The burden may fall on rural and middle class

Due to this, inflation may increase in the coming days, especially the rural and middle class will be burdened. Industry, airlines and common consumers will be affected. The government is already increasing imports from Russia. But challenges may increase in a long war.

Fear of pressure on stock market and business

Today’s attacks may increase selling pressure in the Indian stock market. Sensex and Nifty are likely to fall as investors become cautious due to global uncertainty. Due to obstruction in the Red Sea and Hormuz routes, ships may have to take a longer route (Cape of Good Hope), which will also increase shipping costs. India’s exports (Basmati rice, medicines, textiles) may become expensive. Imports of pulses, dry fruits and fertilizers from Iran, which have already declined, may be affected.

India issued advisory

India-Israel have strong defense and technological ties. India has issued an advisory for its citizens living in Israel, advising them to exercise ‘extreme caution’ and ‘always remain alert’. The security of millions of Indians working in Gulf countries may be in danger. An operation can be conducted to bring them back to India.

Also read:

America, Israel attacked Iran, Tehran gave a befitting reply, fired 70 ballistic missiles

Explainer: Why did Israel and America launch a massive attack on Iran? Know the biggest reason

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