Capitalmind founder and CEO Deepak Shenoy has sounded an alarm over mounting economic risks stemming from escalating geopolitical tensions, warning that the global economy could face severe turbulence.
Shenoy’s Concerns Over Oil Prices & Market Volatility
- Shenoy highlighted the sharp spike in Brent crude prices, which surged over 11% to $77.48 per barrel, following reports of Israeli airstrikes on Iranian military targets.
- He cautioned that geopolitical complexities will hurt the global economy, stating, “It’s going to get a lot more messy”.
- The Sensex and Nifty fell over 1.5%, reflecting investor anxiety amid rising Middle East tensions.
India’s Economic Vulnerability
- India imports over 85% of its crude oil, making it highly sensitive to price shocks.
- Higher crude prices could worsen inflation, widen the trade deficit, and dent consumer demand.
Global Market Reactions & Future Outlook
- Stock markets worldwide turned risk-averse, with investors pulling back from equities.
- Economists warn that prolonged geopolitical instability could trigger a global slowdown.
With uncertainty looming, Shenoy’s warning underscores the fragility of global markets in the face of geopolitical turmoil.
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