Even if there is an early agreement on a cessation of hostilities in Iran, the price shock will not go away easily. Global prices of oil and gas will remain elevated.
U.S. gas prices hit a record level earlier this month. Limiting 'pain American people are feeling at the gas pump' was a main objective Biden set out in responding to Russia’s invasion of Ukraine.
Material costs for industry will go up, pandemic recovery will take longer. But question is how long oil prices will stay high, with West avoiding sanctions on Russia’s energy sector.
Investors, fund managers are concerned with effects of govt pricing policies on ONGC’s share price, reimposition of subsidies and lower state-set prices.
American objectives are unmet. They neither have muscle nor motivation to resume the war. As for Iran, the regime didn’t just survive, it’s now led by more radical individuals.
COMMENTS