Crude oil became expensive againImage Credit source: ai generated
Tension has once again reached its peak in the Gulf countries. The news of a missile attack on an American warship in the middle of the ocean has shaken the economic wheels of the entire world. In fact, Iran's Fars News Agency claimed that two missiles were fired at an American warship near Jask Island. It is being told that this American ship, which was continuously ignoring Iranian warnings, had to return for its safety after the attack.
Danger looming in Hormuz
This serious development has come to light at a time when US President Donald Trump has announced a major naval mission named 'Project Freedom'. The main objective of this operation is to safely rescue those merchant ships stuck in the important sea route like the Strait of Hormuz, which are not involved in this conflict. This American operation is going to start in the next few hours. However, this announcement by Trump has surprised the officials of the shipping industry, because attacks are continuing in this area and the safe movement of ships seems to be at a complete standstill at the moment.
huge rise in crude oil
The crude oil market has suffered the first and biggest brunt of this military tension. In the international market, Brent crude jumped by more than 4 percent and crossed $ 112 per barrel, and at one time it was trading at $ 113.35 per barrel with a huge rise of about 5%. This wildly rising price of crude oil is a direct economic blow to India. If crude oil remains at this dangerous level, then there can be a huge pressure to increase the prices of petrol and diesel in the domestic market, due to which the inflation rate of everyday items will almost certainly increase. Along with this, the dollar index has also registered strength in the international market.
Global market in red mark
As soon as the news of the missile attack spread, a period of selling started in the global markets. Major indices of the US market, including Nasdaq 100, Dow Jones and S&P 500, lost their early gains and fell by 0.7%. Europe's benchmark Stoxx 600 index also fell 1%. Tuesday morning can be worrying for Indian markets too. At 3:56 pm on May 4, GIFT Nifty was trading at 24,010.5, down 0.6%. Market experts clearly believe that due to this global panic, a 'gap-down' opening can be seen in the Indian benchmark indices, Sensex and Nifty on May 5.
Eclipse on today's rise
On Monday, the Indian equity market showed great strength. During the trading session, the initial softening of oil prices, excellent sales figures of auto companies and the election results of the states gave huge support to the market. Nifty 50 today closed 0.51% higher at 24,119.30, while Sensex gained 0.46% to close at 77,269.40. 13 out of 16 major sectors of the market registered gains, and small-cap and mid-cap indices also closed in the green with gains of 0.7% and 0.6%. Only the decline of technology stocks and Kotak Mahindra Bank limited this rally a bit.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
-
Major UK pizza chain closing down 16 restaurants - full list
-
Ageless star Cher, 79, turns heads in lace at Met Gala after iconic 'naked dress'
-
Understanding Male Sexual Desire: Age and Beyond
-
Girlfriend's Hilarious Love Letter Goes Viral
-
The incredible £2.2 bn railway project that will transform major African country
