Market falls as oil price rises, crisis in West Asia deepens

DOMESTIC equity market reeled under severe selling pressure on Wednesday as geopolitical tensions in West Asia worsened following a hospital blast in Gaza, which killed about 500 people.

- ARSHAD KHAN

There are serious concerns now that the conflict between Israel and Hamas may develop into a bigger regional crisis in the Gulf and push oil prices higher. Brent oil prices rose sharply by 3% on Wednesday to $92.30 per barrel.

If the oil prices continue to go up, it will jolt many nations, including India, efforts to bring down the inflation rate. This will also prompt the central banks to maintain a hawkish stance on future interest rate hikes and prompt investors to turn to safer assets, a big negative for equities worldwide.