The ongoing Iran-Israel conflict in the Middle East has now reached a dangerous point. Where earlier this war was limited only to military power and strategy, now its impact is directly visible on the world economy. Essential energy resources like oil and gas, which were once considered safe, have now become part of war. Its impact is not limited to this region only, but is affecting the economy of the entire world. What was Iran and the Middle East gas field has now completely turned into a battlefield, in which India is also coming under its influence.
The situation worsened when Israel attacked Iran’s largest gas project South Pars. This gasfield is considered the backbone of Iran’s energy supply. After this attack, Iran also retaliated by targeting many energy bases of Gulf countries. Major gas processing hubs like Qatar’s Ras Laffan were damaged, while UAE and Saudi Arabia also faced danger. The fire in Kuwait’s refinery and the attack on Saudi’s Yanbu Port made it clear that no energy destination in the region is safe now.
Earthquake in oil-gas market
This tension has had a direct impact on the global markets. Crude oil prices have increased rapidly and have crossed $116 per barrel. A huge jump in gas prices has been seen in Europe. The biggest concern is about Qatar, which is one of the world’s largest exporters of LNG. If the supply from there is affected, there may be a shortage of gas in the entire world. In addition, approximately 20% of the global oil and gas supply passing through the Strait of Hormuz is also at risk, making the situation more serious.
direct impact on Europe
The impact of this crisis is clearly visible in Europe. Electricity prices have increased rapidly in countries like Italy, Hungary and Romania. A large part of the energy needs of these countries is dependent on gas, so as gas became expensive, electricity also became expensive. Europe’s problem is that it has limited options for gas. In such a situation, due to supply disruption in the Middle East, the pressure on the economy there is increasing.
India’s situation is also worrying
India is also not untouched by this crisis. The country imports about 88% of its crude oil, 50% gas and 60% LPG requirement. A large part of this comes from Gulf countries. At present many Indian ships, which were carrying oil and gas, are stranded near Hormuz. This has increased the pressure on the supply chain. India has tried to manage the situation to some extent by purchasing oil from Russia and other countries, but it is not easy to meet the shortage of gas and LPG.
Stock market is in bad shape
The flame of fire burning in the Middle East is reaching India also. In an atmosphere of tension, the sudden resignation of HDFC Chairman on Thursday added fuel to the fire. Global tension and news related to HDFC shook the stock market. The Indian market fell by about 2600 points in a single day on Thursday, which was the biggest fall in 22 months. In this fall, investors lost Rs 13 lakh crore in a single day.
Gold and silver also declined
At the same time, the commodity market came under pressure due to the Fed’s decision not to cut interest rates. Gold and silver crashed on the futures market by around 7 pm on Thursday evening. Gold fell by about 5 percent to Rs. 144000 per 10 grams. At the same time, the condition of silver also remained bad on Thursday. Silver had fallen by about 13 percent during trading. There was a fall of Rs 32 thousand in silver.
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