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Posted 20 Apr 2024

2 min read

  • Iran’s attack on Israel and Israel's subsequent retaliation to the attack has sparked tensions in the Middle East and beyond.
    •  Previously, Iranian-backed Palestinian group Hamas launched a coordinated and large attack on Israel in 2023.

 

  • Concerns related to  Instability/ Conflicts in the Middle East Region:
    • Effect on Global Trade:
      • Shipping disruptions in the Strait of Hormuz and Red Sea.
        • Recently, Iran seized Israel-linked ship near the Strait of Hormuz (world's most important oil chokepoint). 
        • Houthis (supported by Iran) hijacked a commercial ship in the Red Sea (approx. 12 % of global trade passes through this route, including Suez Canal).
      • Energy Security, volatility in oil and prices may increase as Iran is a key producer of crude oil within OPEC (Organization of the Petroleum Exporting Countries).
    • Israel is believed to be nuclear-capable therefore conflict can lead to a nuclear flashpoint.
    • Global South and global governance would also be impacted by continuing instability in the Middle East. 

 

  • Impacts on India: Affects security of large Indian diaspora, supply of crude oil will be disrupted, increased risk of piracy and hostage-taking, etc. 
  • Tags :
  • Energy Security
  • Red Sea
  • Iran-Israel Conflict
  • strait of Hormuz
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