Middle East Conflict: Potential Impact on Indian Corporates Revealed

CRISIL Ratings has reported that, so far, the ongoing conflict in the Middle East has not significantly impacted the global trade of Indian corporates.

However, the report warns that if uncertainties intensify, several sectors, including speciality chemicals, aviation, and tyres, could feel the effects.

Oil markets have been affected, with Brent crude prices hovering between USD73 to USD76 per barrel over the past week. An escalation in tensions could further spike these prices, impacting upstream and downstream oil companies differently. Despite limited direct trade with Israel and Iran, any further conflicts could disrupt energy supply chains.

(With inputs from agencies.)