New Delhi, March 3 -- The American-Israeli attack on Iran raises a number of vital questions for India and the rest of the world, delving into which is necessary to make the best of a bad situation. The prices of oil and liquefied natural gas have begun to rise as Iran attempts to choke the Strait of Hormuz, through which about one in every fourth barrel of all seaborne crude oil moves.

If this grip lasts, it will make energy imports dearer, weaken the rupee and give inflation a cost-push. India's central bank would need to keep knock-on effects under watch; likewise, at another level, the volume and direction of capital flows.

For now, stockpiles of oil are in focus. If tankers that carry almost a fifth of the world's daily usage canno...