The Core Report #829 Trump’s Peace Gesture and Tehran’s Response Confuse Markets
Mar 23, 2026
Richa Sawhney, Partner (Tax) at Grant Thornton Bharat, explains the new Income Tax Act 2025 and compliance changes. Ajay Shah, economist and XKDR Forum co-founder, discusses exchange rate policy and rupee depreciation. They cover geopolitical market shocks, energy supply risks through the Strait of Hormuz, market volatility and how a floating rupee could restore competitiveness.
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Each LPG Tanker Is A Daily Lifeline For India
- Two India-flagged LPG carriers, Jag Vasant and Pine Gas, navigated an Iran-approved coastal route through the Strait of Hormuz to reach the Gulf of Oman.
- Bloomberg noted these two plus earlier arrivals carry only two to three days' LPG consumption for India, illustrating tight daily supply fights.
Gold Fell Sharply Amid Dollar Strength And Rate Fears
- Gold plunged about 22% since the conflict began and hit its biggest weekly loss since 1983 as investors unwound positions and the dollar strengthened.
- The move was driven by dollar strength and rising expectations of US rate hikes, not by a drop in safe‑haven demand alone.
Four Channels Linking Gulf War To Rupee Weakness
- The rupee hit record lows near 94 per dollar driven by war-related exposures: remittances, exports via the Gulf, oil price shocks and gas shortages.
- These channels reduce foreign inflows and raise import costs, prompting capital outflows and currency weakness.