US Israel Iran War: United States President Donald Trump has announced his decision to step back from major escalation with the Islamic Republic of Iran just hours before the deadline for Iran to concede.
Trump agreed to a ceasefire of two weeks to de-escalate the conflict lasting for 40 days. In another development, Tehran agreed to reopen the strategic Strait of Hormuz conditionally.
US Israel Iran War-Ceasefire Conditions
The United States would hold targeting Iranian power plants, bridges and other civilian infrastructure. This decision was made after Washington agreed in principle to a 10-point peace proposal of Tehran. Washington and Tehran would now meet on April 10 in Islamabad.
Meanwhile, Iran has remarked that it is evaluating the request by USA for negotiations based on its proposal that includes 15 points. Iran also announced that safe passage via the Strait of Hormuz would now be a possibility through coordination with the Armed Forces of Iran and with due consideration of a series of technical limitations.
Is India’s Fuel Crisis Over?
After the ceasefire was announced, oil prices went down below $100 a barrel after a long time. US Stock Futures and Asian markets jumped. US crude oil dropped 14.3 percent to $96.83 a barrel and Brent crude oil futures dropped 13.3 percent to $94.74. This could bring temporary relief to India but its fuel crisis is far from over as of now.
On Wednesday, Indian government bonds surged; the benchmark 6.48 percent 2035 bond yield was at 6.9177 percent. In another development, the Reserve Bank of India announced that the repo rate would stay unchanged at 5.25 percent. It was also announced that the RBI’s policy stance would stay neutral.
RBI Governor Sanjay Malhotra remarked that the STF (Standing Deposit Facility) rate under the LAF (Liquidity Adjustment Facility) shall stand adjusted to 5 percent and the MSF (Marginal Standing Facility) and bank rate to 5.5 percent.
