Even prior to the conflict, the rupee was facing downward pressure due to widening external imbalances and persistent capital outflows. The surge in oil prices has intensified these challenges for the world’s third-largest crude importer.
The government has limited the rise in jet fuel prices for domestic airlines to 25 percent. This decision aims to ease the financial burden on airlines and air travelers. International routes will face the full price increase. Meanwhile, non-scheduled operators are experiencing a more than double surge in jet fuel costs.
Asian shares surged Wednesday as hopes for an end to the Iran conflict grew, with US President Trump suggesting a resolution within weeks. Strong economic data further boosted South Korean and Japanese markets, while US futures also climbed. This positive sentiment overshadowed a slight dip in cryptocurrencies.
Oil prices surged on Wednesday, with Brent crude surpassing $100 per barrel and WTI also climbing. This rise is attributed to ongoing supply risk concerns, despite potential diplomatic progress. Analysts highlight that even a swift end to the conflict may not immediately ease tight supplies due to infrastructure damage and the critical Strait of Hormuz.
Stock market today: Nifty50 and BSE Sensex rallied strongly on Wednesday on hopes of an end to the US-Iran war. While Nifty50 went above 22,900, BSE Sensex was up 2,000 points.
