The West Asian cauldron is cooking a bloody potion, which when served has the potential to numb the economic nerves of most nations, including India. There is heightened tension over the recent attack on two Saudi Arabian oil tankers off the coast of the United Arab Emirates (UAE) and the kingdom’s land installations by unidentified groups, leading to a sudden spike in crude oil prices of about 3 per cent.
The build-up has picked up further momentum as the United States assembled military assets in the region, aiming to cow down Iran. This has been accompanied by an end to the waiver granted to eight countries, including India and China, which allowed them to continue buying oil from Tehran. The sanctions that kick in automatically aims at drying up the flow of Iranian crude. Read More