InvestorQ : Will gulf tanker attacks affect Indian markets? if yes, how?
Tanishq Vaishnava made post

Will gulf tanker attacks affect Indian markets? if yes, how?

Rohit Lad answered.
2 years ago

Indian market is affected due to the slowdown of the global economy and also on certain other factors. Due to the recent oil tanker attack on Japanese and Norwegian tankers through the Strait of Hormuz has made it difficult and risky for the countries to travel through the route. Most of the exports of the oil producing countries around the Persian Gulf including Kuwait, Saudi Arabia, Iraq and Iran consists of about 20 percent of world demand which travel through the Strait of Hormuz. If the attack keeps on increasing then the countries might stop importing oil from these nations. Most of the oil is imported through the Strait of Hormuz to the western countries as well as to the Asian countries including China, India and Japan. If it becomes difficult to import from these countries then the oil prices will rise. Rise in the oil prices does not necessary mean that there will be a significant change in the Indian market. But if the oil prices keeps on increasing for a long time due to this issue occuring continuously then there will be some changes in the market because there are many industries where oil is required for production. The Indian market is generally down due to a slow running global economy due to various issues such as US China trade war which is going on continuously, now if the US Iran war also goes on then there will be an impact on the economy which will also result in the fall in the market. Recently India is going to impose retaliatory tariff on 29 US items which would affect the Indian as well as US market. Just the oil tanker attack would not lead to the change in the Indian market as the Indian market is not directly connected to the incident but if something happens like more oil tanker attacks in the future or trade war by Gulf countries then there will be a change in the Indian market.