The tensions in West Asia bring bad news for businessmen. Several international airlines have been forced to re-route their flights, prices of oil have skyrocketed and India too is feeling the pinch.

Investors are rattled by the volatility in the stock markets and if the crisis continues, it could trigger more trouble for a slowing global economy.

The escalating tensions are driving fears of a recession, investors are worried about the prospect of a conflict. America's move to kill Iran's most powerful General Qasem Soleimani has shaken up the global economy.

If a war-like situation comes up, airlines will have to spend more on insurance as well. They would need to pay anywhere from $18 thousand to $40 thousand more per aircraft every month.

Assurances from the organisation of petroleum exporting countries or OPEC helped in stabilising the prices. But if the war clouds remain, global oil prices could rise again.

Such a situation would be bad news for India -&nbsp;a country that imports more than 80 per cent of its oil needs.&nbsp;

A $10 dollar increase in crude prices would increase India's monthly import bill by $1.5 billion whereas retail inflation would rise by around 0.4 per cent.

The likelihood of full-blown conflict is a far cry as of today. But, the prevailing tensions are already hurting the bottom line of several global businesses around the world.

The tensions in West Asia bring bad news for businessmen. Several international airlines have been forced to re-route their flights, prices of oil have skyrocketed and India too is feeling the pinch.

The tensions in West Asia bring bad news for businessmen. Several international airlines have been forced to re-route their flights, prices of oil have skyrocketed and India too is feeling the pinch. Investors are rattled by the volatility in the stock markets and if the crisis continues, it could trigger more trouble for a slowing global economy. The escalating tensions are driving fears of a recession, investors are worried about the prospect of a conflict. America's move to kill Iran's most powerful General Qasem Soleimani has shaken up the global economy. If a war-like situation comes up, airlines will have to spend more on insurance as well. They would need to pay anywhere from $18 thousand to $40 thousand more per aircraft every month. Assurances from the organisation of petroleum exporting countries or OPEC helped in stabilising the prices. But if the war clouds remain, global oil prices could rise again. Such a situation would be bad news for India - a country that imports more than 80 per cent of its oil needs. A $10 dollar increase in crude prices would increase India's monthly import bill by $1.5 billion whereas retail inflation would rise by around 0.4 per cent. The likelihood of full-blown conflict is a far cry as of today. But, the prevailing tensions are already hurting the bottom line of several global businesses around the world.

Explained: How US-Iran tensions impact the economy

After the surprise airstrike by the USA that has killed Iranian General Qasem Soleimani, tensions have substantially spiked between the two nations. So much so that the possibility of war has been brought up by media, creating fear among the masses globally. Specifically, India should take special heed of this because of our economic and oil interests, at a time when we are undergoing rapid growth in multiple sectors. &nbsp;

Approximately 66 per cent of the crude oil imported in the last financial year was from the Middle East. With India, this dependent, a major war in the Middle East region; an area that is in any case, conflict-prone, will substantially increase consumer prices. Geographically speaking, the Strait of Hormuz, located between Oman and Iran, is the planet’s most important oil checkpoint because of the large volumes of oil that flows through the strait. Furthermore, the Persian Gulf holds a significant percentage of the world’s oil reserves and production. This gulf shares coastlines with Iran, Oman, the UAE, Saudi Arabia and Qatar. &nbsp;

US-Iran Tensions &nbsp;

The USA and Iran share a rocky relationship that dates back to the Islamic Revolution, 1979 that overthrew the Shah, an American ally and brought Iran under a regime that was incompatible to the USA. America placed sanctions on Iran in the 1980s and 1990s in order to put a check on Iran’s regional activities. Heavy economic sanctions were again placed on Iran when President Trump pulled out of the JCPOA in 2018. The pact was signed under the Obama administration in 2015. The JCPOA basically aimed to halt Iran’s nuclear agenda. For Trump, the JCPOA was not enough. Trump said that the pact provisions would still let Iran attain nuclear weapons. Additionally, the American President has made multiple statements expressing that Iran’s nuclear issues, missile program and military expansionism (which garners support from non-state actors) undermine US national interests. &nbsp;

India-Iran Relations&nbsp;

Bilateral relations are strong via economic, cultural and historical links. India and Iran look to each other as key actors in maintaining stability in the region. In 2016, PM Modi and Iran President Rouhani strengthened relations even further through strong partisan engagements. In terms of trade, energy is the most important between India and Iran. Moreover, the development and operationalisation of the Chabahar Port also ties the two nations together. India sees Chabahar Port as a key transport and trade corridor with Afghanistan and Central Asia.&nbsp;

The Impact on India’s Economy&nbsp;

Continued tensions between America and Iran Is detrimental to India’s economy. Because oil prices would heavily increase, India would have to spend much more on oil. This means that less money would be allocated to integral areas such as affordable housing, healthcare and infrastructure and development. Since the death of General Soleimani, oil prices have already surged four per cent in India. This increasing rise in crude oil will also undesirably affect India’s energy supply. It will result in an increase in India’s exports and deplete foreign exchange reserves. There is a more than definite probability that the value of the rupee will go down. And at a time where India’s economy is facing temporary slow growth, this could have severe consequences to national development and infrastructure. &nbsp;

Tensions also affect approximately eight million Indians who live and work in West Asia. India currently receives a whopping $70 billion in remittances from Indian nationals. If eight million are affected by tensions, this means India stands to lose $40 billion in remittances overall. That’s over 57 per cent of received money instantly gone! &nbsp;

The Impact on India’s Foreign Policy &nbsp;

Rising US-Iran tensions massively hinders India’s foreign policy agenda. Development of the Chabahar Port would be halted or, in grave circumstances, ceased altogether. &nbsp;

On one hand, India and Iran carry good relations and cooperate on trade, oil and development. India, Iran and Afghanistan had also recently signed a trilateral agreement to increase trade, collaboration and transit. On the other hand, India carries very strong relations with America as well. We even have a preferred military partnership with the USA. Notably, in 2019, India had to stop importing Iranian oil to comply with US sanctions on Iran to appease Trump’s continued cooperation at a preferred level. &nbsp;

Conclusion&nbsp;

The United States of America and Iran are incredibly strategic for India; a rapidly developing country. Prime Minister Modi has actively worked to meaningfully improve India’s relationship with America over the past few years. India cannot lose such an important ally. Simultaneously, however, our energy security is heavily dependant on Iran. If the USA and Iran cannot work this out and war becomes a stark reality, India faces severe drawbacks to growth, progress and relations. &nbsp;&nbsp;

What is the best plan of action? PM Modi should step up and play an active role in any capacity to ensure that these two countries can somehow work it out without resorting to a full-scale conflict. A hand of help should be offered to both Iran and the USA to help in any way to alleviate tensions. &nbsp;

(Views expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

After the surprise airstrike by the USA that has killed Iranian General Qasem Soleimani, tensions have substantially spiked between the two nations. So much so that the possibility of war has been brought up by media, creating fear among the masses globally.

After the surprise airstrike by the USA that has killed Iranian General Qasem Soleimani, tensions have substantially spiked between the two nations. So much so that the possibility of war has been brought up by media, creating fear among the masses globally. Specifically, India should take special heed of this because of our economic and oil interests, at a time when we are undergoing rapid growth in multiple sectors. Approximately 66 per cent of the crude oil imported in the last financial year was from the Middle East. With India, this dependent, a major war in the Middle East region; an area that is in any case, conflict-prone, will substantially increase consumer prices. Geographically speaking, the Strait of Hormuz, located between Oman and Iran, is the planet’s most important oil checkpoint because of the large volumes of oil that flows through the strait. Furthermore, the Persian Gulf holds a significant percentage of the world’s oil reserves and production. This gulf shares coastlines with Iran, Oman, the UAE, Saudi Arabia and Qatar. US-Iran Tensions The USA and Iran share a rocky relationship that dates back to the Islamic Revolution, 1979 that overthrew the Shah, an American ally and brought Iran under a regime that was incompatible to the USA. America placed sanctions on Iran in the 1980s and 1990s in order to put a check on Iran’s regional activities. Heavy economic sanctions were again placed on Iran when President Trump pulled out of the JCPOA in 2018. The pact was signed under the Obama administration in 2015. The JCPOA basically aimed to halt Iran’s nuclear agenda. For Trump, the JCPOA was not enough. Trump said that the pact provisions would still let Iran attain nuclear weapons. Additionally, the American President has made multiple statements expressing that Iran’s nuclear issues, missile program and military expansionism (which garners support from non-state actors) undermine US national interests. India-Iran Relations Bilateral relations are strong via economic, cultural and historical links. India and Iran look to each other as key actors in maintaining stability in the region. In 2016, PM Modi and Iran President Rouhani strengthened relations even further through strong partisan engagements. In terms of trade, energy is the most important between India and Iran. Moreover, the development and operationalisation of the Chabahar Port also ties the two nations together. India sees Chabahar Port as a key transport and trade corridor with Afghanistan and Central Asia. The Impact on India’s Economy Continued tensions between America and Iran Is detrimental to India’s economy. Because oil prices would heavily increase, India would have to spend much more on oil. This means that less money would be allocated to integral areas such as affordable housing, healthcare and infrastructure and development. Since the death of General Soleimani, oil prices have already surged four per cent in India. This increasing rise in crude oil will also undesirably affect India’s energy supply. It will result in an increase in India’s exports and deplete foreign exchange reserves. There is a more than definite probability that the value of the rupee will go down. And at a time where India’s economy is facing temporary slow growth, this could have severe consequences to national development and infrastructure. Tensions also affect approximately eight million Indians who live and work in West Asia. India currently receives a whopping $70 billion in remittances from Indian nationals. If eight million are affected by tensions, this means India stands to lose $40 billion in remittances overall. That’s over 57 per cent of received money instantly gone! The Impact on India’s Foreign Policy Rising US-Iran tensions massively hinders India’s foreign policy agenda. Development of the Chabahar Port would be halted or, in grave circumstances, ceased altogether. On one hand, India and Iran carry good relations and cooperate on trade, oil and development. India, Iran and Afghanistan had also recently signed a trilateral agreement to increase trade, collaboration and transit. On the other hand, India carries very strong relations with America as well. We even have a preferred military partnership with the USA. Notably, in 2019, India had to stop importing Iranian oil to comply with US sanctions on Iran to appease Trump’s continued cooperation at a preferred level. Conclusion The United States of America and Iran are incredibly strategic for India; a rapidly developing country. Prime Minister Modi has actively worked to meaningfully improve India’s relationship with America over the past few years. India cannot lose such an important ally. Simultaneously, however, our energy security is heavily dependant on Iran. If the USA and Iran cannot work this out and war becomes a stark reality, India faces severe drawbacks to growth, progress and relations. What is the best plan of action? PM Modi should step up and play an active role in any capacity to ensure that these two countries can somehow work it out without resorting to a full-scale conflict. A hand of help should be offered to both Iran and the USA to help in any way to alleviate tensions. (Views expressed above are the personal views of the author and do not reflect the views of ZMCL)

US-Iran tensions and why India should care

India has ended all imports of oil from Iran, its ambassador in Washington said Thursday, becoming the latest country to grudgingly comply with threatened US sanctions.

India had already sharply decreased its imports from Iran and bought one million tonnes (tons) of crude in April, the last month before <a href="https://www.wionews.com/world/iran-warns-of-painful-consequences-if-us-escalates-tensions-220517">Washington stepped up its pressure campaign against Tehran</a> and ended all exemptions to sanctions, Ambassador Harsh Vardhan Shringla said.

"That's it. After that we haven't imported any," Shringla told reporters during a briefing on Prime Minister Narendra Modi's election victory.

Shringla said that energy-hungry India has also ended all imports from Venezuela because it considered itself a partner of the United States -- but said the shift had caused pain at home, with Iran formerly supplying 10 per cent of India's oil needs.

Calling Iran "an extended neighbour" of India with longstanding cultural links, Shringla declined to say if New Delhi shared President Donald Trump's concerns about Tehran.

"This is an issue that has to be dealt with, really, between the United States and Iran. We are only, in many senses, looking at it as a third party," Shringla said.

But he added: "We would not like to see a move towards any escalation in any way in that area, for the simple reason that we depend very heavily on stability in that part of the world."

Trump last year pulled out of a multinational pact under which Iran drastically scaled back its nuclear work in return for promises of sanctions relief.

The Trump administration has instead ramped up economic pressure on Iran and recently deployed military assets including an aircraft carrier strike group to the area.

The United States as of May 2 ended exemptions it had given to eight governments from its unilateral order to stop buying Iranian oil.

Turkey, which enjoyed a waiver and vocally disagreed with the US policy, has also stopped importing oil from Iran, a Turkish official said Wednesday.

State Department spokeswoman Morgan Ortagus welcomed the news from Turkey.

"We want the whole world to comply with these sanctions, and we're grateful for our partners and allies that are respecting them," she told reporters.

The Indian ambassador, however, voiced confidence that US sanctions would not affect its partnership in developing Iran's Chabahar port.&nbsp;

India wants to use the port to ship supplies into Afghanistan in a detour from its arch-rival Pakistan, which historically backed the Taliban.&nbsp;

"I think it is in the interest of both our countries and all others concerned to ensure that that lifeline continues for the people of Afghanistan," Shringla said.

India has ended all imports of oil from Iran, its ambassador in Washington said Thursday, becoming the latest country to grudgingly comply with threatened US sanctions.

India has ended all imports of oil from Iran, its ambassador in Washington said Thursday, becoming the latest country to grudgingly comply with threatened US sanctions. India had already sharply decreased its imports from Iran and bought one million tonnes (tons) of crude in April, the last month before Washington stepped up its pressure campaign against Tehran and ended all exemptions to sanctions, Ambassador Harsh Vardhan Shringla said. "That's it. After that we haven't imported any," Shringla told reporters during a briefing on Prime Minister Narendra Modi's election victory. Shringla said that energy-hungry India has also ended all imports from Venezuela because it considered itself a partner of the United States -- but said the shift had caused pain at home, with Iran formerly supplying 10 per cent of India's oil needs. Calling Iran "an extended neighbour" of India with longstanding cultural links, Shringla declined to say if New Delhi shared President Donald Trump's concerns about Tehran. "This is an issue that has to be dealt with, really, between the United States and Iran. We are only, in many senses, looking at it as a third party," Shringla said. But he added: "We would not like to see a move towards any escalation in any way in that area, for the simple reason that we depend very heavily on stability in that part of the world." Trump last year pulled out of a multinational pact under which Iran drastically scaled back its nuclear work in return for promises of sanctions relief. The Trump administration has instead ramped up economic pressure on Iran and recently deployed military assets including an aircraft carrier strike group to the area. The United States as of May 2 ended exemptions it had given to eight governments from its unilateral order to stop buying Iranian oil. Turkey, which enjoyed a waiver and vocally disagreed with the US policy, has also stopped importing oil from Iran, a Turkish official said Wednesday. State Department spokeswoman Morgan Ortagus welcomed the news from Turkey. "We want the whole world to comply with these sanctions, and we're grateful for our partners and allies that are respecting them," she told reporters. The Indian ambassador, however, voiced confidence that US sanctions would not affect its partnership in developing Iran's Chabahar port. India wants to use the port to ship supplies into Afghanistan in a detour from its arch-rival Pakistan, which historically backed the Taliban. "I think it is in the interest of both our countries and all others concerned to ensure that that lifeline continues for the people of Afghanistan," Shringla said.

Amid Washington-Tehran tension, India ends Iranian oil imports: Envoy

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Explained: How US-Iran tensions impact the economy

US-Iran tensions and why India should care

Amid Washington-Tehran tension, India ends Iranian oil imports: Envoy