Chennai, March 2 -- The US-Iran-Israel war, with Iran's missile and drone strikes on multiple Gulf Cooperation Council (GCC) states beyond US and Israeli military targets, makes this conflict much more serious than last year's bombings or earlier conflicts like the Israel-Palestine and the Russia-Ukraine war, said a top economist at Emkay Global Financial Services.
"If the Middle East tensions persist, elevated oil prices would directly transmit into higher input costs and financial markets and macro stability could deteriorate. For every $1/bbl increase in Brent, we estimate an impact of about Rs 0.52/litre on diesel and about Rs 0.55/litre on petrol retail prices," said Madhavi Arora, Chief Economist.
"On the fiscal response, it is prem...