The average return on the stocks is negative for the week and month after geopolitical conflicts. The economic risk is higher oil prices, a headwind to global growth.

Experts warn that any disruptions could cause crude prices to soar, raising significant concerns about economic impacts in India.

The Strait of Hormuz is crucial for global oil supply, yet Iran's threats to close it face significant constraints. The Strait has been at the heart of regional tensions for decades, and recently, attacks have occurred near it and targeted alternative routes.