In the early hours of trade, the BSE Sensex, however, was in the green, but hostilities in the Middle East and ensuing higher oil prices are likely to negatively impact the capital market in India and elsewhere. Tehran’s intransigence, evident from strikes on commercial shipping, is the root cause of the rising tensions in the region. Several structural factors are expected to prevent it from becoming a full-blown global economic crisis. Central banks may find it more difficult to balance inflation control with economic growth if energy costs remain elevated for a prolonged period. The challenge now lies in containing the conflict and ensuring that critical shipping lanes remain open, thereby preventing temporary disruptions that a prolonged economic shock can cause.