The ongoing Israel-Palestine conflict threatens to undermine economic sentiments in India, posing several potential challenges. It could disrupt trade and supply chains, leading to higher inflation and impacting government finances. One immediate concern is the potential rise in crude oil prices due to potential supply disruptions from the region. Brent Crude prices surged to $89 a barrel, impacting equity markets with a 0.7% decline in the Sensex and Nifty. Gold prices also soared as investors sought safe havens. While Indian officials maintain optimism about energy security, broader economic repercussions are a concern. West Asia constitutes 20% of India’s total trade, with the region supplying nearly half of the country’s oil imports. If the conflict escalates further, it may disrupt global trade, increase freight costs, influence currency exchange rates, and affect the supply of raw diamonds.
Israel-Palestine Conflict Threatens Economic Sentiments in India
![](https://affairsace-media.s3.ap-south-1.amazonaws.com/2023/10/10093019/Banking_crisis_.jpg)