Middle East News: Tension Mounts as Donald Trump Calls it a 'Dangerous Place,' Will Rise in Crude Oil Prices Impact India?

Things have become much more stressful in the Middle East because of recent events. Donald Trump, the former president of the US, called the area a "dangerous place" because of rising security concerns. At the same time that this comment was made, the US chose to pull some staff out of the Middle East, mostly from Iraq. This was done because talks with Iran over a nuclear deal have broken down, and Iran's nuclear program makes the chances of a war higher.

BIG NEWS:

1. CRUDE PRICES UP 5.8%.

2. TENSIONS SOAR IN MIDDLE EAST.

3. ISRAEL "FULLY READY" TO COOK IRAN N-FACILITIES

4. U.S EVACUATES Embassy staff in Baghdad, General Consulate in Erbil, military dependents from the Middle East over fears of Iranian reprisal action.

— Rahul Shivshankar (@RShivshankar) June 12, 2025

Things are getting worse in the Middle East

Some US embassy staff in Iraq will be leaving to make things better, and military dependents will be able to leave other Middle Eastern sites as well. Trump made it clear that the US will not let Iran get a nuclear bomb. This was a tough move at a time when talks with Iran have broken down. US intelligence says that Israel is likely getting ready to attack Iran's nuclear sites. This happens at a time when there are a lot of fights in the area, like Israel's war with Gaza and the recent missile attacks between Iran and its supporters.

Now it's even more dangerous because Iran has said it will attack US sites in the area if they are hit. The US has sent more military units, like ships, bombers, and planes, to the area because things are so uncertain. This shows how seriously people take the threat.

How the price of crude oil changes

A report says that oil prices went up by more than 4% after it was said that the US would be pulling its troops out of Afghanistan and that the war could spread to other countries. A lot of the world's oil comes from the Middle East Gulf area. Weak spots like the Strait of Hormuz are in danger because of the unpredictability. Iran sells about 1.7 million barrels of oil every day and is a big part of OPEC. 

What does this mean for India?

Indians will be really hurt by rising crude oil prices since they use a lot of it. Indian inflation can rise by about 0.3%, and its current account gap can grow by about $12.5 billion, which is equal to 43 basis points of GDP, if the price of oil goes up by $10. It costs more to make things and ship them when the price of oil goes up. This can make it harder for people to buy things because it leads to inflation.

OPEC thinks that India will need a lot more oil, about 5.7 million barrels per day on average in 2025, which is a 3.4% increase. This is because the economy is growing quickly, and the manufacturing and transportation areas are also growing. India is open to changes in supply and prices because its demand is growing, and there are risks around the world.

Rising crude prices are also putting stress on the Indian rupee. This is because more foreign currency leaves the country when oil import bills go up, which could make the currency even weaker. The Indian economy is having a hard time because of these things and rising prices. If oil prices stay high, they could slow down growth.