Iran-Israel Conflict Escalates, Global Markets In Turmoil & Indian Wallets Under Pressure; Here’s What Common People Should To Do? | Explained
On June 13, when Israel attacked Iran, the entire world held its breath. This war is not just a military issue—it’s affecting global markets, especially oil, gold, and gas. The economic shock has reached countries like India too.
Oil Prices Soar, India Hit Hard
As the conflict began, crude oil prices jumped nearly 12 percent.
WTI crude (US benchmark) rose from USD 73.61 to USD 76.61 per barrel.
Brent crude (global benchmark) climbed to USD 77.77 per barrel.
On India’s MCX exchange, oil prices rose by USD 497 in just 2 days to reach USD 6,295 per barrel.
Why did prices rise?
Nearly 30 percent of the world’s oil and gas comes from the Middle East. Most of it passes through the Strait of Hormuz. With war threats, traders fear a supply disruption, leading to price hikes. This is called a “risk premium.”
Gold Prices Jump: Should You Invest?
When there is war or panic, investors move their money from stocks and bonds to gold.
In India, 24-carat gold rose from Rs 97,455 to Rs 99,058 per 10 grams.
Globally, it touched USD 3,423 per ounce, a new high.
Should you buy gold now?
Experts say gold is safe for long-term savings. But buying at high prices can be risky. It’s better to invest in small amounts and hold it for a long time.
Gas Becomes Costly Too
In the US, natural gas went up by 3 percent to reach USD 4 per MMBtu.
In Europe, prices hit USD 12 per MMBtu, the highest in 10 weeks.
Flights Affected, Travel Costs May Rise
Due to the war, flights stopped flying over Iran, Iraq, Jordan, and Israel.
Airlines are now flying longer routes via Saudi Arabia, Turkey, and Egypt.
Flights are now 2 to 8 hours longer.
Fuel usage is up, and ticket prices may rise.
On June 13, Air India’s Mumbai–London flight had to return mid-way.
6 Ways India Will Be Impacted
Costlier oil will raise import bills – India buys 88 percent of its crude from abroad. Every USD 10 increase adds 0.5 percent to the bill.
Trade routes may change, increasing shipping costs.
Rice, pharma, and diamond exports to Iran may stop.
Weapons from Israel may get delayed – India buys drones, radars, missiles.
Farming inputs like urea and dry fruits could get costlier.
Chabahar Port investment may suffer – India has invested USD 370 million in this Iran project.
What It Means for Your Pocket
If the war continues, your monthly expenses could go up sharply:
Petrol and diesel could rise by Rs 10 per litre.
LPG and electricity bills may increase.
Transport costs will rise, making vegetables, milk, and lentils expensive.
A middle-class family could spend Rs 1,000 more each month.
What Should Common People Do?
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