The escalation of the ongoing war between Israel and Palestine’s Hamas may strain household budgets in Hyderabad and other Indian cities. It has already begun to show its effects on gold rates.
Just as the Russia-Ukraine war previously impacted the global supply of wheat, the Israel-Hamas conflict has the potential to disrupt the world’s crude oil supply, which could impact household budgets in Hyderabad and other Indian cities.
Threat of Israel-Hamas war escalation
The possibility of Iran and Lebanon joining the conflict between Israel and Hamas poses a threat of further escalation in the Middle East region. On Sunday, Iranian Foreign Minister Hossein Amirabdollahian stated that his country cannot simply remain an observer if Israel does not halt its actions in Gaza.
Earlier, Hezbollah, a Lebanon-based armed group and political party, launched a guided Kornet missile at Zahr al-Jamal, an Israeli military site in southwest Lebanon, resulting in the death of one Israeli soldier and the injury of three others.
In response, Israeli warplanes targeted the outskirts of the town of Marwahin by firing two air-to-surface missiles in southern Lebanon.
Given the ongoing Israel-Hamas conflict and the possibility of further escalation, it is likely to hinder global supplies of various consumer products, crude oil, and more, thereby straining household budgets in Hyderabad and other Indian cities. However, the level of impact cannot be accurately assessed.
Petrol and diesel prices in Hyderabad, other cities
As of now, there have been no changes in petrol and diesel prices in Hyderabad and other Indian cities since the beginning of the Israel-Hamas war. However, the Brent crude oil price in the international market has already risen by over 7.5 percent since the start of the Israel-Hamas war on October 7.
On October 6, the Brent crude oil price was USD 84.58 per barrel, but it had increased to USD 90.98 by October 16.
The escalation of the Israel-Hamas war may lead to further increases in crude oil prices, and if Iran becomes involved in the conflict, there is a possibility of even greater price surges due to sanctions and disruptions in global supplies.
In such a scenario, oil-importing countries, including India, will have no choice but to raise oil prices, and this is bound to have an impact on household budgets in Hyderabad and other Indian cities.