Experts believe that an escalation of the war could lead to a sharp increase in crude oil prices, which in turn increases inflation, which will also impact the stock market.
Published: March 1, 2026 1:14 AM IST
New Delhi: The war between Iran and Israel could impact India’s oil, trade, stock market, and gold and silver prices. If the war escalates, the Strait of Hormuz could be closed, jeopardizing half of India’s monthly oil supply.
In addition, India’s non-oil exports could also be affected, with more than 10% of India’s oil supply coming from this region. Experts believe that an escalation of the war could lead to a sharp increase in crude oil prices, which in turn increases inflation, which will also impact the stock market.
In such circumstances, the market could see significant selling and declines. On the other hand, when global tensions escalate, investors tend to look for safe havens. During these times, people prefer to buy gold and silver. Therefore, their prices are likely to increase.
Why is Strait of Hormuz so important to India?
The Strait of Hormuz, located between Iran and Oman, is the world’s most important oil route. India imports most of its crude oil from countries like Saudi Arabia, Iraq, Kuwait, and the UAE, a large portion of which comes through this route.
If Israel attacks Iran’s oil facilities or Iran blocks this route, the supply chain will be completely disrupted. This will impact India as well as the global oil market.
26 lakh barrels of oil come to India daily through Hormuz
India imports approximately 2.6 million barrels of its crude oil needs daily through this route. According to Kpler data, approximately 50% of India’s total monthly oil imports in January-February came through the Hormuz route. This figure has now increased from 40% in November-December 2025.
Sources say that if the Strait of Hormuz closes, India may consider other options. These include Saudi Arabia’s East-West Pipeline and the UAE’s Abu Dhabi Crude Oil Pipeline. Both pipelines were built to ensure a continued oil supply without using the Strait of Hormuz.
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