• Source:JND
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US-Iran Ceasefire: The entire world breathed a sigh of relief after news about the ceasefire between the two warring sides - Iran and the US, marking a significant pause in the 40-day-long war, which created global fuel havoc. The US and Iran agreed to a two-week ceasefire on Wednesday, less than two hours before US President Donald Trump's deadline for Tehran to reopen the Strait of Hormuz or face devastating attacks on its civilian infrastructure. As Iran accepted the proposal to reopen the Strait of Hormuz, a critical global chokepoint which passes one-fifth of the world's fuel needs. The development is a big relief for India as well. As a fuel-importing country, India also faced an oil and gas shortage.

Sensex, Nifty Revive With 3.5% Jump

The immediate impact of the ceasefire was seen in the Indian stock market. Indian benchmark indices opened with significant gains on Wednesday as global investor sentiment improved following the announcement of a pause in the war. BSE Sensex stood at 77,230.04 points, marking an increase of 2,613.46 points or 3.50 per cent at 9:15 am. Simultaneously, NSE Nifty 50 stood at 23,855.15 points, up by 731.50 points or 3.16 per cent.

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Brent Crude Plummets 13.04 %

The ceasefire triggered a massive sell-off in the energy sector. Brent Crude plummeted 13.04 per cent to trade at USD 95.02 per barrel at 7:24 am IST, while US Crude Oil dropped 13.76 per cent to USD 97.41 at the same time. On the other hand, Gold surged by 100.45 points or 2.13 per cent. A decrease in crude oil prices means the rate of almost every item of daily use will see a fall, which is good news for the common people.

Fuel Crisis Likely To End In India

India imports about 60% of its LPG consumption, and out of these imports, about 90% come through the Strait of Hormuz, which has been impacted due to the war in the Middle East. India’s crude oil supply remains secure. India's total natural gas consumption is about 189 MMSCMD, of which 97.5 MMSCMD is produced domestically. About 47.4 MMSCMD of supply has been affected due to force majeure conditions. India’s daily consumption is about 55 lakh barrels, which largely depends on the Gulf countries.

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With the announcement of the ceasefire, now, the oil ships carrying gas and crude oil may pass through the narrow chokepoint in the Persian Gulf as they did before the war, which means the supply of gas, petrol and diesel in India will be normal in the coming days.

Welfare Of One Crore Indian Diaspora

The ceasefire also brought relief for the families whose kin are living in the Gulf countries. Around one crore Indians, mostly working class, are living in the Middle East. There were reports that a few Indians have lost their lives in the Iranian attacks. Saudi Arabia, the UAE, Oman, and other US allies were under Iranian attack.

(With Agencies Inputs)


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