Hyderabad and other indian cities may see a rise in household budget constraints as a result of the intensifying conflict between israel and Hamas. Its impact on gold rates has already started to become noticeable. The Israel-Hamas battle has the potential to interrupt the world's crude oil supply, which might affect household budgets in hyderabad and other indian cities, just as the Russia-Ukraine war previously affected the world's wheat supply.

The threat of Israel-Hamas war escalation
There is a risk that the war between israel and Hamas will worsen in the Middle east if iran and lebanon decide to get involved. Hossein Amirabdollahian, the foreign minister of iran, said on sunday that if israel does not stop its actions in Gaza, his nation cannot merely continue as an observer.

Earlier, an Israeli soldier was killed and three others were injured when Hezbollah, an armed organisation and political party based in lebanon, fired a guided Kornet missile towards Zahr al-Jamal, an Israeli military facility in southwest Lebanon. In retaliation, Israeli aircraft launched two air-to-surface missiles into southern lebanon, aiming for the outskirts of the town of Marwahin.

The current confrontation between israel and Hamas, along with the potential for future escalation, is expected to impede worldwide supplies of a range of consumer goods, crude oil, and other commodities, placing a burden on household budgets in hyderabad and other indian cities. Nevertheless, it is impossible to determine the impact's exact magnitude.

Petrol and diesel prices in hyderabad, other cities
Since the start of the Israel-Hamas conflict, petrol and diesel rates in hyderabad and other indian cities have remained unchanged. But since the Israel-Hamas conflict began on october 7, the price of Brent crude oil has already increased by more than 7.5 percent on the global market. The price of a barrel of Brent crude oil was USD 84.58 on october 6; by october 16, it had risen to USD 90.98.

Crude oil prices could rise more as a result of the Israel-Hamas war's intensification, and if iran joins the fight, sanctions and interruptions to world supply could drive up prices much further. Oil-importing nations, like India, would be forced to increase oil prices in such a case, which would undoubtedly have an effect on hyderabad and other indian cities' household budgets.
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SIBY JEYYA

17/10/2023 08:55 AM