The rise in crude oil prices after the Israel-Hamas war is a matter of concern

New Delhi: Fluctuations in crude oil prices and geopolitical tensions are a major cause of concern following the Israel-Hamas war. The heads of Indian companies believe that the Israel-Hamas war will not have a major impact on the sales and operations of the companies in the long run.

The war will not affect the operations or investment of the companies and their operations in the country are going well. The geopolitical situation is unstable and fragile. This could pose a problem if Israel's tensions in West Asia deepen, but for now there is no chance of any increase in their spending.

This war will affect the prices of crude oil and may increase its price. Oil prices rose 3 percent to a one-week high of $90.48 per barrel. The Israel-Gaza tension has raised fears of an oversupply of crude oil in the global market and pushed up oil prices. According to oil analysts, oil prices could spiral out of control if Iran or Hezbollah went to war, with Brent crude trading between $90 and $10 a barrel. About 53.33 percent of the participants expressed apprehension that the geopolitical situation may worsen.

However, there has been no major disruption in oil supply so far and oil prices are moving in a range. An escalation in the dispute could affect oil supplies, which could drive up fuel prices. In addition, as the 10-year US bond yield has crossed 5 percent, foreign capital has become expensive and the cost of borrowing has increased for them. It can be challenging for companies to raise capital from abroad and interest rates can go up to 11-12 percent.