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Bloomberg Quint
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Iran-Israel Tensions: Indian Oil, Asian Paints, IndiGo & More — Stocks Likely To Be Impacted
- Tensions between Israel and Iran could impact global oil supply chains through the critical Strait of Hormuz.
- The Strait of Hormuz is a vital maritime chokepoint through which significant amounts of global oil pass.
- Iran's history of targeting merchant ships in the Strait has raised concerns about disruptions.
- Countries like Saudi Arabia, Iraq, and the UAE heavily depend on the Strait for oil and gas exports.
- Approximately one-third of global seaborne oil moves through the Strait, affecting energy markets worldwide.
- India, with two-thirds of its oil imports and half of LNG imports via the Strait, faces challenges if supply is disrupted.
- Potential consequences include surging global oil and gas prices, impacting countries like India.
- Stocks that might be negatively affected include oil & gas companies, paint manufacturers, tyre firms, lubricant producers, and aviation companies.
- Higher oil prices could lead to margin pressures for various industries relying on crude derivatives.
- Companies such as Indian Oil Corp, Asian Paints, IndiGo, and others may see adverse impacts on margins.
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