Markets trade flat as Sensex, Nifty close with slender gains

The Strait of Hormuz, a narrow 33-kilometre passage connecting the Persian Gulf to the Arabian Sea, has emerged as the most consequential flashpoint of the Iran conflict for India. Iranian naval forces have broadcast warnings to commercial vessels, effectively threatening to shut down the world's most important oil corridor. For India, this is not a distant concern. Nearly half of its crude oil imports and around 60 percent of its natural gas supplies pass through this single chokepoint. The economic consequences of a prolonged disruption, rising fuel prices, a weaker rupee, inflationary pressure on ordinary households could arrive quickly. The Strait of Hormuz is 33 kilometres wide. India's options may be even narrower.