BENGALURU: Senior Professor of Economics, S R Keshav, has cautioned that an escalation of the Iran-Israel conflict could severely impact India. If Iran closes the Strait of Hormuz, it will cause significant difficulties for India, he noted.
Keshav pointed out that India imports around 80 per cent of its crude oil, most of which passes through the Strait of Hormuz. Any disruption to this waterway will affect India’s imports and exports, leading to substantial losses, he warned.
The Strait of Hormuz is crucial for India’s trade with countries like Saudi Arabia, the UAE, and other Arab nations. It is also essential for India’s exports to European countries.
Keshav emphasized that the conflict will not only affect India, but also most Asian countries, including China. China needs Iran, while Israel needs the US, making the situation even more complex, he felt.
