The US-Iran war has increased tensions in the Middle East. This war is gradually getting bigger, in which 10 countries are gradually joining. Meanwhile, crude oil prices have seen a sharp rise. When the market opened on Monday, Brent crude oil jumped 10 percent to nearly $80 per barrel. Experts say that if oil prices increase further, they could reach $100 per barrel.
The rise in crude oil prices and the possibility of war have also worried stock market investors. Today a sharp decline is also expected in the Indian stock market. Oil traders say that if the situation worsens, prices could reach $100 per barrel.
Excessive supply from the Strait of Hormuz
The biggest reason for the rise in oil prices is the Strait of Hormuz, which can lead to a rapid increase in oil prices. Because it is a chokepoint that supplies about 40% of the world’s crude oil, which is controlled by Iran. Closing this route may cause interruption in oil supply, which may lead to a rise in oil prices.
How big a crisis for India? Following Iran’s warning, most tanker owners, oil companies and trading houses have halted shipments of crude oil, fuel and LNG through the Strait of Hormuz. India and China import a large amount of oil through this route. India imports 50% of its total oil imports through this route and also exports many commodities to Gulf countries through this route.
What will happen to the stock market?
Nifty has fallen 166 points. Therefore, further decline of more than 150 points is expected. A sharp decline was seen in the stock market on Friday also. Sensex fell 961 points, while Nifty fell 317 points. Nifty fell 900 points and Sensex fell 7,000 points in the pre-open market.
