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The entire scenario in the international market has changed within the last few hours. The sudden announcement of ceasefire between America and Iran has created a stir in the global markets. Crude oil, which was trading at a record high a few days ago, has now suffered its biggest decline since the 1991 Gulf War. WTI crude, which was above 117 dollars just a day ago, has fallen by about 15 percent and has come down to 91 dollars. At the same time, Brent crude has also fallen below 92 dollars, taking a dive of more than 13 percent.

This is how the big supply crisis was resolved

This storm of decline has come mainly because of the two-week peace agreement between America and Iran. Under this agreement, a condition was set by Donald Trump to immediately open the 'Strait of Hormuz', which Iran accepted and announced to stop its attacks. This waterway is the real lifeline of the global economy. About 20 percent of the world's oil supply (20 million barrels of crude per day) and 25 percent of LNG passes through this route. 50 percent of oil import of our country India also depends on this route. With the opening of this route, OPEC Plus has decided to increase production by 2.06 lakh barrels per day. Apart from this, a huge increase of 55 lakh barrels has been recorded in America's oil inventory, which has eliminated all the concerns of reduction in supply from the market overnight.

Crude oil will reach $70

The commodity market is seeing this peace agreement as a new lifeline. Well-known market expert Anuj Gupta estimates that due to this major improvement in the supply chain, the price of crude oil may come down to the level of 70 to 80 dollars per barrel in the international market in the next few weeks. Gupta believes that whatever turmoil there was in the market in recent times was not due to lack of demand. The main reason behind this was the challenges of logistics and transportation, which were directly caused by the war. Now with the removal of these obstacles, the supply of oil and gas will normalize rapidly.

Investors' lost confidence is returning

The biggest benefit from reduced geopolitical tensions will be to those industries which are directly dependent on regular transportation, packaging costs and availability of fuel. Now a big burden has been lifted from the heads of the companies which have been living in fear of uncertainty for some time.

From the perspective of the domestic stock market, new life seems to be coming back in sectors like banking, infrastructure and capital goods related to the pace of the economy. It has been a big relief for the Indian market that despite heavy selling by foreign investors, domestic investors held their position strongly and supported the market. India's macroeconomic scenario remains completely stable even today. As the risks of war reduce at the global level and cash flow improves, the economy will get a stronger base, the positive impact of which will also be visible on the purchasing and consumption of the general public in the times to come.