4 hrs ago

Hormuz Reopening Could Lift Indian Stocks and Gold

Iran has reportedly said it could reopen the Strait of Hormuz within seven days.

It would do this if the United States reduces military pressure and lifts its blockade on Iranian ports.

The strait is an important route for oil and liquefied natural gas shipments.

If it reopens, more oil could reach world markets.

That could make oil cheaper for countries such as India, which imports a lot of crude.

Cheaper oil may help Indian companies and push the stock market higher.

Lower oil prices could also reduce fears that central banks will raise interest rates.

Because of this, gold prices could rise, although geopolitical news may keep them volatile.

Key facts

Reported reopening timeframe: Within seven days, subject to Iran’s conditions
Reported conditions: The United States would need to ease military pressure and lift its blockade on Iranian ports
Brent crude reaction: Fell more than 2% to around $98 per barrel after the report
Energy flows through Hormuz: About 20 million barrels of oil per day and roughly one-fifth of global LNG trade
Indian market implication: Lower crude prices could provide macroeconomic relief and support a market upswing
Oil level cited for sustained rally: Crude may need to fall below $90 per barrel and remain low
Gold forecast: MCX gold could reach ₹1,53,000–₹1,54,000 per 10 grams, with a cited range of ₹1,51,000–₹1,54,500

livemint.com · 4 hrs ago