The terse statement masked the deep unease about how far the ripples from this sharp spike in US-Iran tensions will extend across the region, and impact India.

With Iran vowing revenge, a possible widening of the US-Iran conflict, from Saudi Arabia to Afghanistan and Pakistan, will not leave India unaffected.

India should position itself in the Saudi-Iran rivalry carefully.

Major Impacts:

  • Increased oil import bill
  • India will have to manage its delicate relation with Iran
  • Depreciation of currency

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