Middle East Tensions Spike Crude Prices, Global Economy in Crosshairs

The renewed hostilities in the Middle East have added to the region's volatility and caused anxiety globally due to the potential impact on the global economy.

The recent escalation of the war has already reflected in crude prices, which have risen by around four percent. The BSE Sensex was initially in the green, but hostilities in the Middle East and higher oil prices are likely to negatively impact the capital market in India and elsewhere.

Farea al-Muslimi, a Yemen-focused fellow at Chatham House, stated that 'The Houthis have one solution for every problem in the world, which is go to war.'

The conflict has also led to Beijing deciding to hold direct talks with the Houthi militia to ensure safe passage of its tankers through the southern Red Sea.