U.S-Iran conflicts affects Indian economy

7 Jan 2020

U.S-Iran conflicts affects Indian economy

U.S-Iran conflicts affects Indian economyDespite some periods of cooperation, the US and Iran have long been in conflict.

However, the killing of Iran's military commander has not only affected the Middle East, but also the economy of hugely oil-dependent countries such as India.

India is the world's third-biggest oil consumer. It imports more than 80 per cent of crude oil requirements and around 40 per cent of natural gas.

Earlier this year, India stopped buying Iran oil due to US sanctions against Iran and resorted to importing more from the US and Venezuela.
 	After the US imposed sanctions, the relations between Iran and the US have gotten worse.
 	However, the latest US strikes will have a greater impact on the Indian basket of crude oil prices and the exchange rate. 
 	Now, the import bill of the country will increase by roughly $1.6 billion (around Rs 11, 482 crores) per annum.
 	Also, it is likely that fuel prices in India will increase in the next few days.

Meanwhile, Esmail Ghaani has taken charge as the new leader of the Quds Force after General Qasem Soleimani's death.

However, Trump threatened to destroy 52 of Iran’s cultural and heritage, if Iran fights back.

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Despite some periods of cooperation, the US and Iran have long been in conflict. However, the killing of Iran’s military commander has not only affected […]

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