Middle East War: What Will Be Effect On Indian Economy As Israel, US Attack Iran?

New Delhi: The war between Iran and Israel is now taking a serious turn. First, Israel and the US jointly attacked more than 30 Iranian bases, and now Iran has attacked seven US military bases, including Israel. Iran has fired missiles at bases in Kuwait, the UAE, Qatar, and Bahrain.

Now, seven to eight countries have joined the war. Iran is targeting US military bases in the Middle East. The Hezbollah in Lebanon and the Houthis of Yemen are also launching attacks against Israel on Iran's behalf. This has created a sense of fear throughout the world. However, it is difficult to predict how long and severe this attack will be. Similarly, investors in the stock market are also apprehensive. Let's explore the potential impact on various sectors in India...

What is the effect on crude oil prices?

The outbreak of this war has frightened investors worldwide, including India. Experts say this attack is sure to cause a sharp rise in crude oil prices, which could increase inflation. Many countries, including India, import their crude oil from the Strait of Hormuz. This area is expected to be closed during the war, leading to a rise in crude oil prices. On Friday, crude oil prices rose 2.78% to close at $67.02 per barrel. When the commodity market opens on Monday, it will rise further.

Is there a possibility of sharp decline in the stock market?

The war has become so intense that experts believe that stock markets around the world, including India, could see a sharp decline on Monday. The extent of this decline will depend on investor sentiment and selling. Signs of this were visible in the Indian market on Friday itself, when talks between Iran and the United States failed to reach any meaningful conclusion. Due to this sentiment, the Sensex closed down 961 points, or 1.17%, and the Nifty closed down 317 points, or 1.25%. Investors will now be watching Monday.

What will be the impact on gold and silver?

Whenever there is a war or a war-like situation in the world, the prices of safe assets like gold, silver, and copper rise. This global development is expected to once again lead to a significant increase in the prices of gold and silver. Currently, the price of 10 grams of gold in the commodity market is Rs 1,61,971 and the price of silver is Rs 2,74,389.