In the wake of the escalating conflict in Gaza, the global crude oil market is facing turbulence as crude oil prices stubbornly hover around the $90 per barrel mark. This situation is causing particular concern for countries heavily reliant on oil imports, such as India.

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In an exclusive interview, CNBC-TV18's Parikshit Luthra engaged in an in-depth conversation with Amelie De Montchalin, the distinguished Permanent Representative of France to the Organisation for Economic Co-operation and Development (OECD) and a former member of the country's cabinet. Their discussion encompassed a wide range of critical topics, including the economic ramifications of the Gaza conflict on both the Middle East and the global economy.

Montchalin discussed the situation stating, "The International Energy Agency (IEA), where India wants to become a member, which is welcome news, has been assessing the initial impact of these tragic developments. We are seeing potential consequences on energy prices, which can pose a global challenge."

Additionally, the interview explored India's role as the current G20 Presidency and its commitments to development finance. Furthermore, the conversation pivoted towards the pressing matter of global climate action and the imperative for coordinated efforts in this direction.

Also Read | Israel's war will continue till it achieves the goal of eliminating Hamas and its infrastructure, says advisor

Montchalin also emphasised the urgency of addressing climate change and the need for a collaborative effort to combat the global reliance on fossil fuels. She stressed the necessity of swiftly reducing and ultimately phasing out fossil fuel usage, a process that not only demands substantial financing but also requires a clear examination of its social ramifications.

"This is why we have entered into what we call a 'Just Energy Transition Partnership' with several countries because we recognize the need for both the private and public sectors to have a clear direction on where we must head," Montchalin added.

On Friday, October 20, oil prices continued to surge, rising by approximately 1%, amid concerns that the Israel-Gaza conflict could potentially expand throughout the Middle East, leading to disruptions in one of the world's major oil-producing regions.

It has now been two weeks since a surprise attack by Hamas on Israel ignited a conflict in Gaza, and the human toll of this war has been immense, with over 5,000 lives lost. This tragic figure includes approximately 4,000 Palestinians and 1,400 Israelis.

For more details, watch the accompanying video.

(With input from Reuters)

(Edited by : Sangam Singh)

First Published:Oct 22, 2023 5:13 PM IST