Israel-Palestine War: Impact on global economy, India-Israel trade, financial markets
Catch Israel-Palestine War Live Updates here The fallout of Israel-Hamas war on the global economy may take time to become clear but would become more severe if the conflict spreads to the rest of the Middle East, especially Iran, which is both a major oil producer and supporter of Hamas. “It’s too early to say" what the implications may be, though oil and equity markets may see immediate fallout, Agustin Carstens, general manager of the Bank for International Settlements, said in a presentation to the National Association for Business Economics, Reuters reported.
Let us understand the impact of Israel-Hamas war on global economy and markets: Crude oil prices surged sharply on Monday as the tensions escalated in the Middle East, home to almost a third of global oil supply. Brent crude rose 3.44% to $87.49 a barrel, while US West Texas Intermediate crude rallied 3.85% to $85.98 a barrel.
However, the crisis is unlikely to pose any major immediate threat to the oil supply unless it further spreads to other countries in the region which could develop into a more devastating proxy war, embroiling the US and Iran. Read here: Oil soars as Hamas’ attack on Israel fans Middle East tensions While there are reports of Iran being involved in the attacks against Israel, any possible retaliation against Tehran could endanger the passage of vessels through the Strait of Hormuz, a vital conduit that Iran has previously threatened to close, analysts said.
“The issue is that if the war persists for long, which is say, even a fortnight onwards, then the oil dynamics will change. Brent had crossed the $90 mark but then retreated.
Now we can use the 90 number to be the threshold beyond which there is trouble for the world economy. India can
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