If the tension between the United States and Iran increases, the oil market will be affected first, because Iran is a major oil supplier to the world and most of its oil passes through the Strait of Hormuz. If there is a problem in that area, the fear of a shortage of oil supply arises and the price of crude oil rises; This leads to an increase in the price of petrol and diesel and an increase in inflation. Since the increase in oil prices increases the costs of many companies, investors will start selling shares in fear, so the share market will go down in the short term. At the same time, when uncertainty increases, people choose gold as a safe investment, so the price of gold will rise. It is normal for oil importing countries like India to experience a weakening rupee, rising prices, and increased market volatility. But this is usually a short-term panic reaction; when the situation stabilizes, the markets will slowly recover.
US – IRAN Tension: Impact on Oil, Gold, Share Market!!!
