How attack on Iran will affect India's stability

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New Delhi, Feb 17: With the recent bomb attack in New Delhi on the Israeli Embassy and India doing a balancing act between Israel and Iran, souring ties with Iran could prove disastrous to the country as it is India's second largest crude oil supplier.

Any conflict with Tehran would impact India's oil supply. Iran earlier, targetting European countries said that an oil barrel would cost $122 and even go up to $150, this threat could also have a negative impact on India. 

Every $10 increase would bring down 5 points from India's GDP. An edition of Asia Economics Analyst by Goldman Sachs said that a $10 per oil barrel would bring down India's economic growth by 0.2 percent.

Iran had earlier threatened to stop their oil supply to six EU nations. It also displayed its nuclear might on television, which the US called a 'mere hype' saying that Iran was only doing so to distract the world from the damage it did by international sanctions.

World oil prices spiked on Thursday, Feb 16 after reports that Iran would stop its crude exports to six European countries. The claim was, however, denied by the Iranian Oil Ministry.

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