What to expect from the Market if West Asia War escalates ?
The United States on Friday destroyed military targets on Iran's main oil hub of Kharg Island, President Donald Trump announced, threatening to strike its oil infrastructure if Iran continues attacks that have halted most ship traffic in the Strait of Hormuz. According to Reuters, the island serves as the export terminal for 90% of Iran's oil shipments. The news agency further added that Iran exported between 1.1 million barrels per day and 1.5 million barrels per day from Kharg Island when the US-Iran war began. The market is expected to react on Monday if the tension in the Kharg island escalates and the US military targets the oil infrastructure of Iran in Kharg island. They said that any hit to Iranian oil infrastructure would mean a sharp upside in crude oil prices on Monday. This means pressure on the Indian Rupee and the equity market. However, they maintained that gold and silver prices may remain flat or even rise, as demand for the metals has dipped amid weaker demand in the UAE.