There will be a shock of inflation again, crisis in Hormuz increased due to American attack on Iran; Big impact on oil and gas prices

Impact of America-Iran War in India: Global tension has reached its peak after the American attack on Iran in the Middle East. Due to the renewed war between the two countries, there is a danger of blockage in the Strait of Hormuz, which is necessary for the supply of 20 percent of the world’s oil needs. Meanwhile, there is a sharp increase in the prices of crude oil, which is a big tension for the whole world. On Wednesday, America carried out massive attacks on 90 Iranian targets. There is news of blowing up two important bridges of Iran in the American attack.

The entire world has already suffered the effects of the ongoing war between Iran, Israel and America since the month of February. However, after the agreement between America and Iran, relief was expected as the movement in Hormuz became normal. But, this recent attack has once again brought many crises in front of the whole world. If this war in the Middle East does not calm down, the whole world may fall into the grip of inflation. Its special impact will be seen on India also. Let us understand in 5 points.

More impact on oil and gas supply

Over the past few months, India has witnessed an oil-gas crisis due to the worsening situation in the Strait of Hormuz due to the ongoing conflict between the US and Iran. During this period, even though India fulfilled its imports from other countries, Hormuz is still important for supplying the country’s oil and gas needs. Before the war, about 40 percent of India’s total crude oil imports and about 60 percent of its LNG imports came via Hormuz. But when it was closed during the war, India saw a sharp rise in the prices of petrol, diesel and LPG after about 4 years. If there is obstruction in Hormuz again due to US-Iran War, then there may be trouble.

India’s import bill is in danger of increasing

Resumption of war between America and Iran may create another problem for India as the country’s import bill may increase. India imports approximately 85 percent of its crude oil needs. Dependence on oil imports has a direct impact on the country due to fluctuations in international crude prices. If movement in Hormuz is affected, there will be a sharp rise in crude oil prices. India’s import bill will increase due to increase in oil prices and increase in current deficit may put pressure on the rupee, which is not good for the economy.

Shock to hopes of cheap petrol and diesel

Due to the oil and gas crisis that had deepened in the country during the ongoing tension in the Middle East, it has remained stable for four years. petrol-diesel The prices were also increased. The fuel price was increased by about Rs 7 per liter four times in a row and the reason behind this was the huge loss suffered by the government oil companies due to the Middle East tension and supply disruption. Along with this, there was also a shock of increase in the prices of LPG cylinders.

After this, due to US-Iran ceasefire and cheaper crude, the hope had increased that fuel could become cheaper in the coming days, but now due to the increase in crude oil prices and Hormuz tension, this hope has reduced.

Inflation may increase rapidly in India

The next bad effect of the US-Iran war will be that inflation may increase in India, which is directly linked to crude oil prices. It is noteworthy that India is one of the largest importer of oil. A large part of the oil imported into India comes through Hormuch.

If this is stopped when the risk of war increases, then India will have to pay more dollars for oil imports due to the increase in oil prices. The pressure of increase in import bill will be visible on the rupee, which will make imported goods expensive, which will increase the risk of inflation increasing.

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There will be an impact on the domestic stock market

Impact of the ongoing war between America and Iran indian stock market Is also being seen. During Wednesday’s trading sessions, Sensex recorded a fall of about 2000 points. When US President Donald Trump made a big statement regarding Iran and announced the end of the ceasefire. This announcement by Trump caused havoc in the domestic stock market and within no time the market crashed completely. This is a clear indication that if the US-Iran war continues for a long time, investors will also face problems.