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Iranian President Ebrahim Raisi's death unlikely to impact Indian markets

Major equity markets across Europe and Asia were largely stable on Monday. Indian equity markets were shut due to the general election amidst polling in Mumbai as part of the general elections

Ebrahim Raisi,  Raisi, Ebrahim

FILE - Iranian President Ebrahim Raisi (Photo: PTI)

Sundar Sethuraman Mumbai

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Iranian President Ebrahim Raisi's death in a tragic helicopter crash is not seen as having a big impact on the domestic markets unless it leads to any escalation in geopolitical tensions, said an expert.

"If there is an impact on oil prices, then it will affect India's import bill. If Iran finds any Israeli hand in the president's death, then the tensions in West Asia could worsen, but that is not yet established, barring some speculation. As long as that is not the case and the succession takes place smoothly, there is no reason for much worry," said UR Bhat, cofounder of Alphaniti Fintech.

Other experts believe the events in the next few days, including the details of the exact cause of the helicopter crash, should be monitored.

Major equity markets across Europe and Asia were largely stable on Monday. Indian equity markets were shut due to the polling in Mumbai as part of the general elections.

Brent crude declined on Monday and was trading at $83.37, a 0.7 per cent fall. Brent crude price fluctuations affect India, as the country imports most of its oil requirements. Iran is the third biggest oil producer in the Organisation of Petroleum Exporting Countries (OPEC) grouping. Brent crude oil has risen 8 per cent in 2024, mainly due to supply cuts by oil-producing countries. But prices have declined by 3 per cent this month.


Meanwhile, gold prices hit a new high at $2,450 per ounce during the day, indicating a shift towards safer assets.

Raisi was killed in a helicopter crash on Sunday along with the country's foreign minister Hossein Amirabdollahian. Raisi was widely considered a frontrunner to succeed Iran's Supreme leader Ayatollah Ali Khamenei, and his death comes at a time when Tehran is involved in a shadow war with Israel after the attack on Gaza last year.

Going forward, the macro data from across the globe, the minutes of the Federal Open Market Committee (FOMC), which will be released on Wednesday, and statements of monetary policy officials will determine the market trajectory.

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First Published: May 20 2024 | 8:04 PM IST

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