Kathmandu – Crude oil prices soared in Asian markets on Friday after Israel attacked Iran. The attack raised fears that it could escalate into a wider conflict in the Middle East and cause major disruptions to crude oil supplies.
After the attack, the price of crude oil increased by about 10%, because most of the world’s oil comes from the Middle East. If supplies there are cut off, oil could become more expensive. This is even more of a concern for countries like Nepal. Because we have to import all our petroleum fuel from India. India also has to buy all its oil from abroad. This could again increase inflation.
Friday’s surge in oil prices was driven by the immediate response to Israel’s attack on Iran, which has boosted geopolitical risk premiums and heightened fears of disruptions to global crude supplies.
Indian stock market declines
The Indian stock market has been affected today after Israel attacked Iran. The market has seen a sharp decline.
The Sensex has fallen by more than 900 points to trade at 80,800. The Nifty has also fallen by about 250 points and is trading at 24,600.
All 30 Sensex stocks fell. The banking, oil and gas, auto and IT sectors saw the biggest declines in share prices.
Following yesterday’s Air India crash, shares of airline companies have also fallen. Shares of the country’s largest airline, IndiGo, fell by 4 percent. SpiceJet fell by about 3 percent. All shares of the Tata Group, which operates Air India, fell.
Israel’s attack on Iran is considered the biggest reason for the market decline.
When there is a war between two big countries, investors panic and start withdrawing money from the stock market. This time, Israel has attacked Iran’s nuclear facilities and military sites, which is why there are fears that the war in the Middle East may escalate. That is why stock investors are panicking and trying to withdraw money from the market.
