New Delhi — The peace agreement between the United States and Iran is expected to help restore global supply chains, stabilize energy markets and ease inflationary and fiscal pressures, according to the PHD Chamber of Commerce and Industry.
Dr. Ranjeet Mehta, CEO and secretary general of PHDCCI, said Monday that the agreement could have a positive impact on countries such as India, which rely heavily on imported crude oil.
“India imports more than 80 per cent of its crude oil requirements, and any decline in global oil prices would help reduce inflationary pressures and contain the fiscal deficit,” Mehta said.
He said the agreement includes the reopening of the Strait of Hormuz without disruptions. The strategic waterway handles nearly 20 percent of global crude oil shipments, making its uninterrupted operation critical for energy-importing economies.
“If the Strait of Hormuz remains fully operational and free from disruptions, it will help secure the smooth flow of crude oil for a prolonged period, benefiting the global economy,” Mehta said.
Mehta also praised the Indian government’s handling of the recent geopolitical crisis, saying supply chains were managed efficiently despite challenges from the conflict in West Asia.
“As a result, India witnessed a relatively moderate increase in energy prices compared to several other countries,” he said.
According to Mehta, the U.S.-Iran agreement could benefit the Indian economy by lowering crude oil prices and reducing demand for the U.S. dollar, which may help stabilize the rupee.
He said the agreement also improved investor sentiment, reflected in gains across Indian equity markets on Monday.
The Sensex rose 736.38 points, or 0.97 percent, to close at 76,264.33. The Nifty advanced 231 points, or 0.98 percent, to settle at 23,853.90. (Source: IANS)
