Markets are scared by Israel-Iran conflict, Sensex-Nifty fell, have you ever thought how much impact it will have on India?
The conflict in the Middle East has jolted global financial markets. Ankit Patel of Arunaset Investment Services says that the growing tension in the Strait of Hormuz in particular has posed a serious threat to global energy supply. This strait is the route through which about 20% of the world’s oil supply passes. Due to the growing crisis in this region, crude oil prices jumped by 12%, which is increasing the risk of inflation and current account deficit (CAD) for import-dependent countries like India.