US–Iran Conflict: Crude Oil Prices Near $120 and Its Possible Impact on India
The rising tensions between the United States and Iran in West Asia are beginning to affect the global economy. Experts warn that crude oil prices in the international market could soon touch $120 per barrel due to disruptions in supply and growing geopolitical uncertainty. For countries like India, which depend heavily on oil imports, this situation could create serious economic challenges.
India imports a large portion of its crude oil needs. When global oil prices rise, the impact is quickly felt in the domestic market. Higher crude prices usually lead to an increase in petrol and diesel rates, which then raises transportation costs. As a result, the prices of many everyday goods—from food to manufactured products—can increase, adding pressure on inflation.
Economists also point out that rising oil prices can affect the country’s economic growth. According to estimates, a 10% rise in crude oil prices could reduce India’s GDP growth by around 0.20–0.25 percent. Higher oil import bills may also increase the current account deficit and weaken the Indian rupee.
Another major concern is the Strait of Hormuz, a crucial route through which nearly 20% of the world’s oil supply passes. Any disruption there could push oil prices even higher and impact economies worldwide.
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