Crude oil prices have surged after reports of US striking Iran's Qeshm Island have emerged. This has sparked fresh concerns over an escalation in the US-Iran
conflict and supply disruption worries via the Strait of Hormuz. Brent crude oil prices traded near 105 dollars per barrel (at the time of filing this copy). Multiple explosions were heard on Iran's Qeshm Island in the Persian Gulf, with state media reporting that residents also spotted two aircraft flying over the area. The incident comes as Iran's Islamic Revolutionary Guard Corps (IRGC) claimed to have shot down three US drones near the Strait of Hormuz. The US-Iran conflict that began in late February has sharply reduced traffic via the Strait of Hormuz, which previously carried about a fifth of global crude oil and natural gas supplies. Experts believe the US-Iran war is the key reason of high gasoline prices that are weighing on voters, and Trump is under pressure to end the conflict. Brent crude rates ended October at its highest in six months on concerns that the Middle East conflict may escalate again after US midterm elections. The India crude oil basket is currently at 118.74 dollars per barrel, G. Chokkalingam Head of Research at Equinomics Research told Times Now Digital, "both the economy and markets are likely to remain under pressure in the short-term due to oil prices and consequently, rising inflation. Price of Indian crude oil basket is around 118 dollars per barrel. If this price rises significantly further, industrial economic growth will also be impacted adversely, apart from inflation." In fact market experts also believe crude prices are a big risk for the stock market. India imports approximately 85 percent to 90 percent of its crude oil requirements, therefore analysts believe higher crude rates hurt input costs of all companies, margins, their earning profitability and that in turn weighs on the stock market.
