More Israel-Iran conflict means bad times for Indian economy

More than 80% of India's oil requirements come from the Middle East, majorly from Iran. After the US bombing of Iran's nuclear plant sites, Iran has announced to block the Hormuz passage of the Persian Gulf which is expected to severely affect international transportation of oil. This will shoot up the oil prices, and add up to inflation. Hormuz blockage continues, in spite of the call for ceasefire.

- Buroshiva Dasgupta

The international oil price is hovering around $100 a barrel and the expected disruption of oil transportation, observers fear, could shoot up the barrel price to $150 or even more. One estimate says that with each 10 dollar rise of oil price per barrel could mean a rise of ₹ 7 per litre of petrol. The Israel-Iran conflict intensifying – and now the US directly entering into the war zone – means bad times for Indian economy.

The Iran-Israel conflict in the Middle East has a long history. If the Palestinians have survived the repeated thrashing of Israel, it is certainly because of tacit support of Iran. Israel was curved out of Palestinian land and the Palestinians have never accepted that. Now Israel wants to grab more land from Palestine, and the US openly supports Israel on this. President Trump recently announced to take over Gaza and transform it into a tourist land!