How Khamenei’s Death Affects Indian Trade Market?

The United States president, Donald Trump has officially confirmed the death of Iranian supreme leader Khamenei. This is one of the biggest global news as it would severely deteriorate the spirits of Iranian administration. The country is currently observing a state-approved 40 day mourning period on that note. 

On that note, let us have a discussion about the possible effects that this Iranian supreme leader’s death will have the Indian and also the global economy. 

Considering the fact that Iran controls the waterways that contributes to nearly 20% of the global oil trade, this death of Khamenei could abruptly obstruct the same. The country has already shut down this route for global crude exports. Subsequently, the demand for crude oil is likely to go up and so will the prices.

On top of that, the escalating war conditions will add additional value to gold and silver as this will become the safe investment for the buyers globally. Upward trajectory has started already as the prices of gold and silver have started to go considerably beyond the expectations.

Iran is likely to have a new administration under a new leader, and this transition would take a lot of time and subsequently the trade activities concerning the country and its water routes could be heading for a delay.