Rupee gains slightly to cap week clouded by Middle East conflict
The Indian rupee ended modestly higher on Friday but fell for a second consecutive week as the conflict between Iran and Israel remained the key driver for global markets and kept energy prices elevated, pressuring oil-sensitive currencies in Asia.
The rupee ended at 86.5850, up from its close of 86.7225 in the previous session. It was down nearly 0.6% on the week.
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While escalating tensions in the Middle East kept risk appetite under pressure for much of the week, markets found some relief on Friday after U.S. President
Donald Trump
pushed back a decision on U.S. military
involvement
in the Israel-Iran war.
Brent crude oil prices declined more than 2% on the day after rallying to a five-month high of $79.04 per barrel earlier in the week.
Most
equity
gauges in Asia logged gains, with India's benchmark equity indexes, the BSE Sensex and Nifty 50 , rising 1.3% each.
Live Events
Analysts pointed out that oil prices and the Middle East conflict would likely remain the key drivers for FX markets in the near term. On the day, the dollar index was a tad lower at 98.6 but was on course for a weekly gain.
"The FX market has taken the somewhat lower probability of the U.S. intervening in Iran already this weekend as an opportunity to re-enter USD short positions, especially against European currencies," ING
Bank
said in a note.
"This confirms that a constant flow of oil-positive, risk-negative geopolitical news is needed to keep the dollar supported," the note added.
For the rupee, meanwhile, traders
will
also gauge the extent of
portfolio
inflows that a large
IPO
scheduled next week will draw.
Sizeable inflows could help the rupee hold ground above the 86.50 mark while a sharp rise in crude oil prices could build momentum for a fall below 87, a trader at a foreign bank said.
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News18
35 minutes ago
- News18
The Strait Of Hormuz: Has Iran Ever Closed The World's Most Critical Oil Route?
Last Updated: For decades, Iran has threatened to close the Strait of Hormuz. As tensions with Israel hit new highs, the question returns: Has it ever done it? And what happens if it does now? For over half a century, the Strait of Hormuz has served as the world's most vital energy corridor. Connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, this narrow waterway, just 21 nautical miles wide at its tightest point, is the main transit route for oil and gas exports from some of the most energy-rich nations on the planet. Saudi Arabia, Iraq, Kuwait, Iran, and the UAE all depend on it to get their crude to global markets. According to data from the US Energy Information Administration (EIA), nearly 20–21 million barrels of oil pass through the strait every single day, roughly a fifth of the world's daily consumption. It is also a key route for liquefied natural gas (LNG), especially from Qatar. Any disruption here doesn't just rattle West Asia; it shakes energy markets across the globe. And yet, despite decades of political brinkmanship, proxy wars, sanctions, drone attacks and naval showdowns, the Strait of Hormuz has never once been fully shut in modern history. Has The Strait Ever Been Closed? No. But It Has Come Close One of the most persistent myths about West Asia's conflicts is that Iran has previously blocked the Strait of Hormuz. While it is true that Tehran has repeatedly threatened to do so, sometimes in response to sanctions, sometimes as political posturing, it has never followed through. During the Iran–Iraq War in the 1980s, both sides launched attacks on oil tankers in what became known as the 'Tanker War." Iran mined parts of the Gulf and used fast-attack boats to target Kuwaiti and Saudi tankers. Iraq retaliated with missile strikes. The conflict led the United States to intervene, reflagging Kuwaiti tankers and escorting them with US warships under Operation Earnest Will. Several ships were damaged, some sunk, and global oil prices spiked. But crucially, the Strait remained open throughout, battered but not blocked. In 2011 and 2012, Iran once again threatened to close the Strait in response to European and American sanctions targeting its oil exports and banking system. Senior Iranian officials, including then-Vice President Mohammad Reza Rahimi, warned of a complete shutdown if oil sanctions were enforced. Western powers responded swiftly, dispatching naval forces to the region. The United States, the UK and France conducted high-visibility naval exercises, making it clear that any attempt to blockade Hormuz would provoke military retaliation. Iran, ultimately, did not escalate further. More recently, in 2019, tensions soared after the US withdrew from the Iran nuclear deal and imposed 'maximum pressure" sanctions on Tehran. Iran was blamed for attacks on tankers near the Strait and was caught seizing a British-flagged oil tanker, the Stena Impero. A US surveillance drone was also shot down by Iranian forces. Once again, fears of closure gripped global markets. Yet even amid these flashpoints, the Strait remained navigable. Why Has It Never Been Fully Shut? Iran's threats to block the Strait have historically served as a geopolitical lever — a way to raise the stakes without firing the first shot. But a full closure has always been a risky gambit, not least because it would come at a huge cost to Iran itself. About 90 per cent of Iran's oil exports also pass through the Strait. Blocking it would strangle its own economy, already crippled by sanctions, and isolate it further. Moreover, the move would likely be interpreted as an act of war, giving the US and its allies legal and political justification for direct military intervention. With the US Navy's 5th Fleet headquartered in Bahrain, any closure attempt would be met with overwhelming naval force. Diplomatic costs aside, Gulf countries such as the UAE and Saudi Arabia have also taken measures to reduce vulnerability by building overland pipelines that bypass Hormuz altogether. Though these pipelines don't eliminate dependence entirely, they offer partial mitigation. As a result, Iran's leadership, while often willing to provoke, threaten, or harass shipping, has historically stopped short of a full blockade. So What Makes The Current Crisis Different? The Israel–Iran conflict in 2025 is distinct not because missiles are flying, they've flown before, but because of the scale, openness, and maritime dimension of the escalation. Three developments make this round far more volatile than previous flare-ups. Israel has publicly acknowledged direct strikes on multiple key Iranian nuclear sites, including Natanz, Fordow, Isfahan, and Arak. These aren't isolated incidents or covert sabotage attempts. They are deliberate, declared military actions against some of the most protected and strategically vital components of Iran's nuclear programme. This is a sharp departure from previous Israeli operations. In earlier years, Israel was widely believed to be behind cyberattacks like Stuxnet (2010), mysterious explosions at Natanz (2020), and the assassination of nuclear scientist Mohsen Fakhrizadeh (2020), but never formally admitted responsibility. Those were covert, plausibly deniable moves aimed at slowing Iran's nuclear progress without crossing into full-scale war. Record ballistic missile barrages deep into civilian areas While Iran has previously launched missiles, including during escalations in 2024, this round was unprecedented in both scale and intensity. Iranian forces fired hundreds of ballistic missiles, including Sejjil-class and newer variants, toward Jerusalem, Tel Aviv, and Be'er Sheva. One missile landed on the grounds of Soroka Medical Centre, injuring civilians. The combination of sheer volume, trajectory over densely populated areas, and civilian casualties represents a deliberate escalation meant to pressure the Israeli public. Israel publicly declaring Khamenei a wartime target In a major rhetorical escalation, Israel has shifted from opposing Iran's nuclear ambitions to directly targeting its top leadership. On June 19, Israeli Defence Minister Israel Katz explicitly declared that ' Khamenei cannot continue to exist," calling him a 'modern Hitler" and blaming him for ordering missile strikes on Israeli civilian infrastructure. Complementing Katz's statement, a Reuters report quoted Israeli officials as saying that the June airstrikes were not just about dismantling Iran's nuclear and missile capabilities, but were also aimed at 'breaking the foundations of Khamenei's rule" and weakening the regime's internal grip on power. This is the first time Israel has publicly identified Ayatollah Khamenei himself as part of its war objectives. Previous conflicts, even at their peak, focused on Iran's weapons programmes or proxy forces. What Happens If The Strait Is Closed, Even Temporarily? Even a temporary disruption to the flow of oil through Hormuz would have serious global repercussions. Energy markets are already jittery. A full blockade could send oil prices soaring past $120–130 per barrel within days. Shipping insurance premiums would spike. LNG supply chains, particularly to Asia, would be severely impacted. Major energy importers like China, Japan, South Korea and India would feel the heat almost immediately. Naval deployments would increase across the board, and the chances of accidental escalation between rival warships or submarines would rise sharply. The US has already repositioned key naval assets in the Gulf, including aircraft carriers and guided missile destroyers. Freight delays, insurance re-pricing, and investor anxiety could together inflict real damage on the global economy. India: Energy Security and Strategic Stakes India imports more than 60 per cent of its crude oil through the Strait of Hormuz, sourcing supplies from key partners such as Iraq, Saudi Arabia, Kuwait, and the UAE. Given this dependency, any prolonged disruption in the strait could affect energy flows and pricing, but Indian officials have sought to project calm amid rising tensions. Speaking to News18, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri offered reassurance, stating: 'Even if everything goes wrong, we have enough oil." He explained that out of the 5.5 million barrels of crude oil India imports daily, around 1.5 million barrels come via the Hormuz route. 'The worry will be if the strait is closed or choked," he noted, adding that 'there are many countries that would not want it to be shut." Puri emphasised that while India is monitoring the situation closely, the Strait of Hormuz has not been closed in the last 50 years, even during high-tension phases. 'I would use the word anxiety, not worry," he said. 'There have been many phases of heightened tensions in the region, but energy does not stop flowing." India's Strategic Petroleum Reserves (SPR) provide an additional cushion, covering approximately 9–10 days of national demand. Conclusion: A Strait Always On The Brink top videos View all The Strait of Hormuz is more than just a strategic waterway; it is a geopolitical barometer. Its status reflects the tensions in West Asia, and the current indicators are flashing red. While history shows that Iran has never actually closed the Strait, the dynamics in 2025 are markedly different: open hostilities, regional spillover, and the growing likelihood of US intervention. Whether Iran crosses that final line, and whether the world can afford the consequences, remains to be seen. About the Author Karishma Jain Karishma Jain, Chief Sub Editor at writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @ More Get Latest Updates on Movies, Breaking News On India, World, Live Cricket Scores, And Stock Market Updates. Also Download the News18 App to stay updated! tags : Israel-Iran tensions Strait of Hormuz Location : New Delhi, India, India First Published: June 20, 2025, 12:22 IST News explainers The Strait Of Hormuz: Has Iran Ever Closed The World's Most Critical Oil Route?
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Time of India
38 minutes ago
- Time of India
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Its board representation will also shrink from five directors to Bajpai (R), MD and group CEO, Ixigo, and Rajnish Kumar (L), co-CEO, IxigoVenture fund Elevation Capital has offloaded shares of Le Travenues Technology, the parent company of travel platform Ixigo, for a second time in a month, pocketing a 25x return on its Zuckerberg, CEO, MetaMeta's $14.2 billion recent investment in Scale AI, and roping in its CEO Alexandr Wang, appears to be just the beginning. Mark Zuckerberg seems to be on a man on a mission : to recruit top AI talent, and reports suggest he made a move for one of the sector's most-talked-about to CNBC, Zuckerberg tried to acquire Safe Superintelligence, the $32 billion startup founded by former OpenAI cofounder Ilya Sutskever. The talks didn't go far, with Sutskever reportedly turning him down. 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In January, it launched Pyng, a professional services marketplace This signals a departure from Swiggy's earlier 'superapp' strategy. Instead of integrating all services under one platform, Swiggy has started offering standalone apps. Instamart, its quick commerce unit, got a dedicated app earlier this May, the company shut down its parcel delivery service, Genie , opting instead to focus on Bolt, its rapid food delivery feature now available in 500 cities. As food delivery growth tapers off, Swiggy and rival Zomato are betting on 10-minute orders to regain Aggarwal, founder, KrutrimOla's AI division, Krutrim, has acquired BharatSah'AI'yak , an AI platform developed by governance consultancy move comes as Krutrim seeks to expand its presence in government-led digital initiatives through its proprietary AI stack. As part of the agreement, Krutrim has also onboarded Samagra's core AI has been employed in projects spanning education, agriculture, and citizen services. It will now be integrated with Krutrim's in-house large language models (LLMs), cloud infrastructure, and agentic AI assistant platform, February, Ola founder Bhavish Aggarwal announced an investment of Rs 2,000 crore in Krutrim , with plans to increase it to Rs 10,000 crore by next has recently faced internal turbulence , including several senior-level departures and criticism following the alleged suicide of an employee, with claims of a toxic work Mohan, CEO, YouTubeYouTube Shorts now commands around 200 billion daily views , according to CEO Neal marks a dramatic leap from March 2024, when YouTube said Shorts was attracting around 70 billion daily views. In just one year, daily viewership has surged by nearly 186%.As Shorts continues to gain traction, YouTube plans to strengthen support for creators by rolling out more tools. Mohan announced that Veo 3, the latest version of Google DeepMind's video generation model, will launch on the platform later this summer.
