Written By: Sayantan Ghosh

News18.com

Last Updated: October 02, 2024, 15:43 IST

New Delhi, India

Smoke rises after Israeli strikes in South Lebanon. (Image: AP/File)

The recent massive rocket attack by Iran on Israel signals a grim reality: achieving a ceasefire or peace in the Middle East is currently out of reach. Iran’s direct involvement escalates tensions, posing a significant risk of broader regional turmoil. This unprecedented retaliation by Iran against Israel raises the spectre of a wider war in the region.

The Middle East is already burdened by deepening fault lines, with the conflict in Gaza remaining a key issue that fuels the cycle of violence. Given Iran’s military capabilities and nuclear ambitions, the stakes are higher than ever.

India’s economic stability is closely tied to the Middle East, a region now teetering on the edge of prolonged turmoil due to the escalating conflict between Iran and Israel. As a nation that relies heavily on the Middle East for its energy security—importing nearly 80 per cent of its crude oil from the region—any disruption in oil supplies could have a ripple effect on the Indian economy. Rising oil prices would not only strain public finances but also lead to inflation, increasing the cost of living for millions and slowing down economic growth.

Beyond energy, the conflict threatens India’s vital trade routes. The Middle East serves as a crucial transit point for Indian exports, particularly to Europe. Prolonged conflict in the region could cause significant trade disruptions, leading to delays and increased costs for Indian exporters. This, in turn, would affect India’s trade balance, further destabilising an already fragile global economic environment.

India also finds itself in a delicate diplomatic position, having cultivated strategic relationships with both Iran and Israel. As tensions rise, India faces the challenge of balancing its ties with these two nations while maintaining its stance on peace and stability. This balancing act could........

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