Why US-Iran tensions are worrying Indian markets
Markets were on a holiday on Tuesday, and the Gift Nifty indicated Indian stock markets were likely to open lower on Wednesday, thanks to rising US-Iran tensions.
With Iran reportedly closing the Strait of Hormuz—a key route for oil—Brent crude has shot up to $85.12 per barrel, its highest in over a year and a half.
That's bad news for India, since higher oil prices usually mean pricier imports and more pressure on the economy.
Asian markets have also taken a hit
It's not just India feeling the heat—Japan's Nikkei 225 dropped 3.06%, and South Korea's Kospi slid 7.24% in Tuesday's session.
Indian indices like Nifty 50 and Sensex have also taken hits lately.
If these high oil prices stick around, fuel and other consumer prices could get more expensive here too, making things trickier for both investors and everyday folks keeping an eye on their budgets.