Deepak Shenoy's stark warning for global economy amid growing geopolitical risks: 'It's going to get a lot more messy'
Iran-Israel conflict: Deepak Shenoy, founder and CEO of Capitalmind, warned investors against the rising risks that the increased geopolitical complexities pose for the world economy. His warning comes amid the latest flare-up in tensions in the Middle East that sparked a rally in crude oil prices, sending them past the $78 per barrel mark.
In a social media post on X, Deepak Shenoy said that geopolitical complexities have dramatically increased and will hurt the world economically. 'It's going to get a lot more messy, it seems,' Shenoy warned.
Oil prices jumped more than 13% on Friday after Israel said it struck Iran, targeting its nuclear facilities and ballistic missile factories, to prevent Tehran from building an atomic weapon.
Amid fears of a disruption to crude oil supplies, the benchmark Brent crude contract hit $78.50 per barrel, its highest since January 27, and was last up 9% at $75.50 per barrel.
This dramatic crude oil price spike has immediate and far-reaching implications for the global economy. For India, which imports over 85% of its crude oil needs, higher crude oil prices could affect the inflation outlook. It could also result in other issues like a widening of the trade deficit and potential depreciation of the rupee.
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