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regular-article-logo Thursday, 23 May 2024

Crude oil price rise fear looms amid heightened tensions between Iran and Israel

Stock market circles said that equities could also come under pressure in the near term and investors could chase safe haven assets like gold and the US dollar amid rising tensions in the region

Our Bureau Mumbai Published 14.04.24, 06:03 AM
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The tensions between Iran and Israel could be another headache for the global economy as it might lead to a rise in crude oil prices at a time when central banks are yet to tame inflation.

With Iran reportedly threatening to shut the Suez Canal, it could also lead to supply chain challenges.

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Stock market circles said that equities could also come under pressure in the near term and investors could chase safe haven assets like gold and the US dollar amid rising tensions in the region.

On Friday, Brent crude futures settled above the $90 per barrel mark, at $90.45, against its previous close of $89.74.

Airline routes

Air India has joined several other international airlines in avoiding Iranian airspace as tensions between Tehran and Jerusalem escalate.

Flight-tracking data indicate that a London-bound Air India flight took a significantly longer route on Saturday to avoid Iranian airspace.

The carrier may now take up to 45 minutes longer to arrive at destinations in Europe.

However, the rising tensions will not affect flights to West Asia as the routes lie south of Iranian airspace.

An Air India statement said: “We are closely monitoring the developing situation in the Middle East. Presently, our aircraft will operate on alternative flight paths to and from India — according top priority to the safety of our passengers and crew.”

Air India had restarted flights to Tel Aviv in early March after a nearly five-month gap amid the Gaza war.

Several other airlines, like Qantas, are avoiding Iranian airspace. Some, like Lufthansa, have extended a suspension on flights to and from Tehran.

Budget carrier Indigo, which has code-sharing arrangements with several airlines that fly to Europe, will be impacted by the air space avoidance.

Some of the airlines with which it has such an arrangement are Turkish Airways, British Airways, Qatar Airways, American Airline, KLM-Air France, Qantas, Jetstar, Malaysian airlines and Virgin Atlantic.

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