With tensions escalating in West Asia, the International Monetary Fund on Tuesday said it is closely tracking the situation but cautioned that it is “too early to assess the economic impact on the region and the global economy,” as disruptions to trade and energy markets intensify.In a statement, the IMF said it has “observed disruptions to trade and economic activity, surges in energy prices, and volatility in financial markets.”“The situation remains highly fluid and adds to an already uncertain global economic environment,” it said, reported ANI.“It is too early to assess the economic impact on the region and the global economy. That impact will depend on the extent and duration of the conflict,” the IMF added.The remarks come as governments evaluate the fallout of the widening hostilities in the region, particularly on oil supplies and global financial stability.In India, Petroleum and Natural Gas Minister Hardeep Singh Puri earlier said the country is “fully prepared amid evolving situation in the Middle East and energy supplies are robust.”He stated that “the country is well stocked with crude oil and inventories of key petroleum products including petrol, diesel and ATF to deal with short-term disruptions arising from the Middle East.”According to the minister, Indian energy companies have access to supplies that are not routed through the Strait of Hormuz, and such cargoes will remain available to mitigate any temporary disruptions affecting shipments passing through the strait.The Petroleum ministry has also set up a 24×7 Control Room to continuously monitor supply and stock positions of petroleum products across the country.The government is “reasonably comfortable in terms of stocks,” the minister said, adding that safeguarding the interests of Indian consumers remains the highest priority. Based on continuous monitoring, the government is cautiously optimistic that phased measures can be taken, if required, to further mitigate the situation.Government sources said India currently holds about eight weeks of crude oil and petroleum product inventories, including strategic reserves. They added that only about 40 per cent of India’s crude oil imports transit through the Strait of Hormuz, limiting exposure to regional disruptions.Sources maintained that the country remains in a comfortable position on energy security and is closely monitoring developments, while being prepared to manage potential supply-side challenges through adequate inventory levels and diversified sourcing.

A fresh wave of global selling pressure hit Wall Street on Tuesday, as escalating tensions involving Iran deepened fears of prolonged economic disruption. The S&P 500 fell 1.8 per cent in early trade. The Dow Jones Industrial Average was down 907 points, or 1.9 per cent, as of 9:35 am Eastern time, while the Nasdaq Composite dropped 2.1 per cent. The renewed slide came just a day after US equities had erased steep early losses to close marginally higher — a rebound that had hinged on oil prices remaining contained. That relief faded as crude surged closer to levels that investors fear could reignite inflationary pressures. Brent crude, the global benchmark, jumped 8.2 per cent to $84.14 a barrel after trading near $70 less than a week ago. US benchmark crude rose 8 per cent to $76.92. Oil prices spiked after Iran struck the US Embassy in Saudi Arabia, broadening its list of targets to include areas central to global oil and natural gas production. Markets are particularly focused on the Strait of Hormuz, a strategic chokepoint off Iran’s coast through which roughly one-fifth of the world’s oil supply passes. Any disruption there could have outsized consequences for global energy markets. Uncertainty over the duration of the conflict is adding to volatility. US and Israeli strikes have already killed Iranian Supreme Leader Ayatollah Ali Khamenei, yet US President Donald Trump has indicated that hostilities could persist for weeks. In a late-night social media post on Monday, Trump said wars can be fought “forever” with the munitions available to the United States. The sharp rise in crude threatens to compound inflation, which remains elevated, by increasing fuel and transportation costs. According to data from motor club AAA, the average US gasoline price rose 11 cents overnight to about $3.11 per gallon.On Wall Street, airline stocks extended losses amid concerns over higher jet fuel costs and travel disruptions linked to the conflict. United Airlines fell 4.1 per cent, American Airlines declined 4 per cent and Delta Air Lines slipped 3 per cent. Bond markets also reflected rising inflation expectations. The yield on the 10-year US Treasury climbed to 4.10 per cent from 4.05 per cent late Monday and 3.97 per cent on Friday. Higher yields translate into more expensive borrowing costs for households and businesses, affecting everything from mortgages to corporate bond issuances.The impact in equity markets has been most pronounced in sectors and countries heavily reliant on energy imports. In South Korea — a major oil importer — the Kospi index plunged 7.2 per cent in its worst session in nearly two years as markets reopened after a holiday. Japan’s Nikkei 225 fell 3.1 per cent, despite analysts noting that Japan maintains strategic energy reserves estimated to last more than 200 days.