Stock Market: Iran has decided to keep the Strait of Hormuz closed. Iran has recently warned the world to prepare for oil prices of $200.The Iran crisis is causing havoc in the stock market. Domestic markets, along with markets worldwide, are trading with sharp declines. The Sensex fell 5.5% in the week, its biggest weekly decline since May 2020. The Nifty 50 also fell 5.3% during this period. However, experts are warning investors to prepare for worse conditions ahead. The stock market could fall by another 10% if and fears around the market is that if the Strait of Hormuz remains closed for some more time, the market could fall further.
Expert's Opinion
Market Experts are of the that if the Strait of Hormuz remains closed for the next 10 days, crude oil prices could reach around $180 per barrel. In such a scenario, global stock markets, including India, could decline by around 10%. Furthur that the likelihood of such a situation is low, investors should be mentally prepared for such risks, as rising tensions in West Asia are impacting global energy supplies and financial markets. And the most important thing for India right now is to see the Strait of Hormuz open or for the flow of ships to and from India to increase, and he hopes this will happen sooner or later. Even if the war continues, given the Strait of Hormuz's importance, there is every hope that it will be opened or some kind of arrangement will be reached.Furthur, when tensions in the region ease, financial sector stocks could lead the overall market recovery. The financial stocks have been under greater pressure in the recent decline, even though they are less directly affected by the Middle East conflict.
Current Scenario
While uncertainty surrounding the Iran war persists, Iran has reiterated its commitment to keeping the Strait of Hormuz closed. Attacks on several ships in recent days have disrupted traffic through this route, pushing crude oil prices once again above $100 per barrel. Recently, Iran warned the world to prepare for a price of $200.Also read-
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