The US bombing of Iran’s nuclear sites has led to a widening of the Israel-Iran war and a further escalation in geopolitical tensions that could lead to a surge in global oil prices, which have already shot up by close to 20 per cent this month. The benchmark Brent crude futures were trading at around $77 a barrel, and the market is reported to be bracing for another spike in prices with the US having stepped into the Middle East conflict. A wider Middle East conflict is expected to have an impact on oil supplies from Saudi Arabia, Iraq, Kuwait and the UAE, which would lead to a sharp spike in the prices. Shipping could also get hit as the Houthi rebels have already warned that they would resume their attacks on ships if the US attacked Iran. India imports around 85 per cent of its crude oil requirement, and a surge in oil prices can lead to an increase in its oil import bill and push up the rate of inflation, which can hurt economic growth. The larger outflow of foreign exchange can also lead to a weakening of the rupee vis-a-vis the US dollar. According to a report … Continue reading Oil Prices May Surge As US Attack On Iran