Capitalmind founder and CEO Deepak Shenoy on Friday sounded an alarm over the mounting economic risks from escalating geopolitical tensions, warning that the global economy could be headed for more turbulence.
"Geopolitical complexities have dramatically increased and will hurt the world economically. It's going to get a lot more messy, it seems," Shenoy posted on social media platform X, along with a screenshot of Brent crude prices surging over 11% to $77.48 a barrel.
His comments come amid a sharp spike in oil prices following reports that Israel had struck Iranian military targets. Fears of a wider regional conflict sent Brent crude briefly past the $78 mark — the highest level since Jan. 27.
The latest flare-up in the Middle East, coming on top of the prolonged Russia-Ukraine war and continuing global trade frictions, has rattled investors. On Friday, the Sensex and Nifty each fell over 1.5% as global markets turned risk-averse.
India, which imports more than 85% of its crude oil requirements, is particularly vulnerable to such price shocks. Higher crude prices pose risks to inflation, widen the trade deficit, and could dent consumer demand, economists warn.
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