Israel's lethal attack on Iran creates panic in China, Xi falls into his own game while trapping Modi, Chinese economy to... India to...
China falls into its own trap
New Delhi: The world's largest gas field, the South Pars, has been completely damaged in Israeli attack. This has led to the complete halt in the production of gas. It is important to note that this is the first time Israel has targeted Iran's oil and gas infrastructure, clearly indicating that Israel is now attempting to harm Iran's economy. As a result, global oil and gas prices may see a significant surge. If the conflict continues for long, crude oil prices could rise to as much as USD 120 per barrel, according to JPMorgan. The South Pars gas field produces around 12 million cubic meters of gas per day.
The South Pars gas field is located beneath the sea in Iran's southern Bushehr province. It stretches into the Persian Gulf, where the maritime borders of Iran and Qatar meet. The Qatari portion is known as the North Field. This region is a major supplier of LNG to the world.
Nearly half of Iran's total gas reserves are located here, and 66 percent of Iran's gas production comes from this field. After the US and Russia, Iran is the third-largest gas producer in the world. It produces about 275 billion cubic meters of gas annually, accounting for around 6.5 percent of global supply. Iran's Current Condition:
Due to international sanctions, most of the gas produced in Iran is being used within the country. Gas fields are the main source of income in Iran, it also uses this gas to heat homes, run factories, and sustain its economy. Qatar, on the other hand, exports 77 million tons of LNG annually from this same field.This attack not only poses a threat to Iran's energy sector but also serves as a warning that more critical sites could be targeted in the future. Huge Impact of Inflation
Iran is likely to face a major crisis in the coming days. Notably, the people of the country is already facing high inflation. Iran's population is nearly 10 times that of Israel. In 2024, Iran's GDP was $434 billion, while Israel's economy stood at $540 billion. Iran's biggest source of income is crude oil, but the United States and Western countries have already imposed various sanctions on Iran. China will also be affected
Over 90 percent of Iran's oil exports go to China. The trade relationship between Iran and China remained unaffected despite the sanctions imposed by the world. But now, the attacks on Iran's oil facilities likely to change this situation. It may disrupt China's oil supply, and if that happens, it could harm the Chinese economy as well.
In March, China imported 1.8 million barrels of crude oil daily from Iran. China, which has blocked the supply of rare earth magnets to India, may now end up falling into its own trap.
Iran's economy is dominated by the Islamic Revolutionary Guard and Islamic organizations. They neither pay taxes nor maintain transparent records. Experts say Iran is not in a position to fight a prolonged war with Israel.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Print
24 minutes ago
- The Print
Govt meets stakeholders to assess impact of Iran-Israel conflict on trade; monitoring situation
The participants informed that the situation in the Strait of Hormuz is currently stable and a ship reporting system is in place to monitor any incidents. New Delhi, Jun 20 (PTI) The commerce ministry on Friday held consultations with key stakeholders, including shipping lines, exporters, container firms, and other departments, to assess the impact of the Iran-Israel conflict on India's overseas trade, an official said. The freight and insurance rates are also being closely monitored, the official said. The commerce secretary emphasised the need to assess the evolving situation and its impact on Indian trade, the official said. He highlighted the importance of exploring all possible alternatives in response to the situation. Exporters have stated that the war, if escalated further, would impact world trade and push both air and sea freight rates. They have expressed apprehensions that the conflict may impact the movement of merchant ships from the Strait of Hormuz and the Red Sea. Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz, which Iran has now threatened to close. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. According to think tank GTRI, any closure or military disruption in the Strait of Hormuz would sharply increase oil prices, shipping costs, and insurance premiums, triggering inflation, pressuring the rupee, and complicating India's fiscal management. The present conflict that began with an attack on Israel on October 7, 2023 had brought cargo movement through Red Sea routes to a halt due to attacks by Houthi rebels on commercial shipping. Last year, the situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Around 80 per cent of India's merchandise trade with Europe passes through the Red Sea, and substantial trade with the US also takes this route. Both these geographies account for 34 per cent of the country's total exports. The Red Sea Strait is vital for 30 per cent of global container traffic and 12 per cent of world trade. India's exports to Israel have fallen sharply to USD 2.1 billion in 2024-25 from USD 4.5 billion in 2023-24. Imports from Israel came down to USD 1.6 billion in the last fiscal from USD 2.0 billion in 2023-24. Similarly, exports to Iran, amounting to USD 1.4 billion, which were at the same level in 2024-25 as well as in 2023-24, could also suffer. India's imports from Iran were at USD 441 million in FY25 as against USD 625 million in the previous year. The conflict adds to the pressure that the world trade was under after the US President Donald Trump announced high tariffs. Based on the tariff war impact, the World Trade Organisation (WTO) has already said that global trade will contract 0.2 per cent in 2025 as against the earlier projection of 2.7 per cent expansion. India's overall exports had grown 6 per cent on year to USD 825 billion in 2024-25. PTI RR HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Print
24 minutes ago
- The Print
Gold declines Rs 600 to Rs 99,960/10 g; silver plunges Rs 2,000/kg
Gold of 99.5 per cent purity dipped Rs 550 to Rs 99,250 per 10 grams (inclusive of all taxes). The yellow metal had closed at Rs 99,800 per 10 grams on Thursday. The precious metal of 99.9 per cent purity had settled at Rs 1,00,560 per 10 grams in the previous market session. New Delhi, Jun 20 (PTI) Gold prices slipped below the Rs 1 lakh-mark, falling Rs 600 to Rs 99,960 per 10 grams in the national capital on Friday due to selling by jewellers and stockists in line with weak global cues, according to the All India Sarafa Association. Silver prices also diminished Rs 2,000 to Rs 1,05,200 per kilogram (inclusive of all taxes) on Friday. It had ended at Rs 1,07,200 per kg on Thursday. 'Silver slid from recent highs, nearing one-week lows and heading for their first weekly decline in three weeks. It fell below USD 35.70 per ounce after a sharp rally earlier in the week. 'The decline came as investors liquidated positions in bullion to cover losses elsewhere amid rising geopolitical tensions between Israel and Iran,' Rahul Kalantri, Vice-President, Commodities at Mehta Equities, said. The Bank of England on Thursday also held rates steady in its monetary policy meetings, which also limited gains of precious metals. However, intensifying conflict between Israel and Iran, and weakness in the rupee is also supporting prices of gold and silver in the domestic markets, Kalantri said. On the global market, spot gold was trading at USD 3,353.67, lower by USD 16.72 per ounce, or 0.5 per cent. Spot silver fell 0.77 per cent to USD 36.10 per ounce in the overseas markets. 'Traders will watch developments on US trade tariffs and Middle East military engagement will drive volatility. Any signs of de-escalation or non-involvement from the US in the Iran-Israel conflict could keep gold under pressure. 'On the other side, renewed tensions will continue to support prices,' Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said. PTI HG HG TRB BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
India.com
25 minutes ago
- India.com
Iran Israel war: 5.2 magnitude earthquake hits Iran.... Did the Muslim nation conduct secret underground nuclear test?
Iran Israel war: 5.2 magnitude earthquake hits Iran.... Did the Muslim nation conduct secret underground nuclear test? Iran Israel war: In the midst of the ongoing war with Israel, something happened in Iran late Friday night which has given birth to a new theory. On June 20, an earthquake of magnitude 5.1 hit Iran. Since this earthquake, speculations have started that Iran has secretly conducted a nuclear test. This earthquake occurred on June 20 at 9:19 pm local time. Let us tell you that Israeli Prime Minister Benjamin Netanyahu has vowed to destroy Iran's nuclear bases. Army is stationed in Semnan According to the information given by the European-Mediterranean Seismological Center (EMSC), this earthquake in Iran was 35 kilometers below Semnan. The earthquake was so strong that its tremors were felt in many parts of northern Iran. However, there is no confirmation of anyone being injured or any major destruction due to this. The earthquake has come at a time when the conflict between Iran and Israel is increasing. Due to this war, Iran's military units have also been deployed in many areas including areas close to the earthquake zone. As soon as the information about the earthquake came, nuclear test started trending on X and users started making their own speculations. Some users said that if the nuclear test is true, then now even America will be afraid of entering the country. Importance of Semnan for Iran It is being told that Iran's Semnan province is the place where its missile complex and missile center is located. If the report of the website is to be believed, then a ballistic missile test range and manufacturing facility is present in the Semnan missile complex. It is believed that China has provided all the necessary help to Iran in making it. Iran started making Oghab unguided artillery rockets in Semnan in 1987. Its target since then was to make 600 to 1,000 such rockets every year. Solid fuel artillery rockets Najet, Shahab-I missiles are also produced in this plant. The website estimates that the Jeljel rocket was also probably made here. Iran's space center and its associated launching facilities are also in Semnan province. Iran refuses to negotiate According to a recent report in Israeli media, Israel has received information that Iranian scientists have successfully completed the process of designing nuclear weapons. Israel had then said that if this is true, then Iran is just a few steps away from making a nuclear bomb.
