West Asia flare-up risks energy, inflation shock for India & Asia, says Moody’s
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New Delhi: Escalating hostilities in the Middle East are heightening risks for India and other Asian commodity importers as military strikes and retaliatory attacks disrupt key energy and trade routes, Moody’s Analytics said on Monday.
Media reports suggest the conflict has effectively closed the Strait of Hormuz, a critical conduit for global energy flows.
India, the world’s third-largest oil importer, sources roughly half of its oil needs through the narrow waterway. Moody’s warned that the closure raises the risk of further disruptions in the Red Sea and across the wider Middle East, while airspace closures have compounded pressure on passenger travel and cargo flows. Asia is particularly exposed, buying the bulk of oil and gas produced in the region.
