Escalating hostilities in the Middle East risk renewed energy, inflation shocks: Moody's

NEW DELHI: (Mar 2) 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.

The United States and Israel launched military strikes on targets in Iran over the weekend. Tehran retaliated with missiles and drones aimed at Israel and countries hosting US forces, including the United Arab Emirates, Qatar, Kuwait, Bahrain, Iraq, Jordan and Saudi Arabia.

Media reports suggest the conflict has effectively closed the Strait of Hormuz, a key conduit for global energy flows. Roughly one-third of the world's seaborne crude oil exports and about 20 per cent of liquefied natural gas shipments transit the narrow waterway.