The assassination of General Qassem Soleimani, the Commander of the Quds Force of the IRGC by the United States drone strike in Baghdad has triggered high tensions between the two nations Iran and the US. This move was a massive escalation by the Trump Administration of the lower level proxy war against Iran which has been fighting for dominance in the Middle East. No offence that hashtags #WWIII and #WorldWAR3 sited trending in no time. On the other hand, the US-Iran Crisis started showing its effect on the world’s economy with oil prices surge and inflation in many of the middle-East countries. How is it affecting our country?
While India is stifling with a series of debacles like the Citizenship Amendment Act, plummeting Gross Domestic Product growth, the US-Iran crisis came as an external shock. With the Budget sessions right around the corner, the crisis has come as bad news of sorts to the Finance team and central bank which is already struggling to keep the inflation under the bay. It is to the known knowledge that India imports nearly 90 per cent of its oil from Iran, Iraq and Saudi, which are in high tensions now, it is estimated that the price of oil would increase $10-per-barrel.
To curb this, the Ministry of Petroleum and Natural Gas are now in plans to progressively encouraged to import crude from sources such as the US, Canada and Mexico. While the price of petrol was raised by up to 10 paise per litre, the price of diesel increased by up to 15 paise per litre. market benchmark Sensex tumbled 162 points on Friday as global investors turned risk-averse. The Indian rupee (INR) fell sharply at 4 per cent against the US dollar (USD). However, the Finance Ministry declined to comment on recent developments.