Mumbai: Global tensions in the Middle East are now affecting the financial markets. Due to the ongoing conflict involving Iran, Israel and the United States, the price of crude oil has risen sharply in the international market. Oil prices have crossed 115 dollars per barrel, which has increased worries about rising inflation across the world.
Because of this situation, the Indian stock market saw a big fall when trading started on Monday. The BSE Sensex, which tracks 30 major companies, dropped by more than 2400 points in early trading. At the same time, the NSE Nifty 50 also opened with a sharp fall of over 700 points.
The market had already shown weakness last week. On Friday, the Sensex closed 1097 points lower, while the Nifty ended the day 315 points down. Experts say global uncertainty and fear of a bigger conflict are making investors nervous.
The fall was not limited to India. Several Asian markets also dropped sharply. Japan’s Nikkei 225 fell by more than 4000 points. Hong Kong’s Hang Seng Index dropped by over 800 points, while South Korea’s KOSPI declined by around 7 percent. Futures trading in Gift Nifty also showed a fall of more than 500 points before the market opened.
The rising oil prices may also affect common people. If crude oil prices stay high, fuel prices like petrol and diesel could increase. This may lead to higher costs for transport and daily goods, putting more financial pressure on households.
Reports say that attacks on oil facilities in Gulf countries and risks to ships passing through the Strait of Hormuz have raised concerns about oil supply. Because of this uncertainty, global energy markets are becoming unstable.
Experts warn that if the conflict continues, markets may remain volatile and the impact could be felt in many countries, including India.