Brent crude has hovered around $100 a barrel as fighting intensifies in West Asia. Any further escalation could disrupt supplies and unsettle global energy markets
The Strait of Hormuz carries about a fifth of global crude flows. Disruptions have again reduced oil movement, raising concerns over supply security and prices
Higher oil prices are not just an Iranian problem. They are also fuelling inflation in the US, complicating monetary policy and raising the risk of higher interest rates
India imports most of its oil. Sustained high prices could widen the current-account deficit and intensify pressure on capital flows, despite robust economic growth
Higher energy costs could push Indian inflation higher. Even partial pass-through to consumers may force monetary tightening, while rising gas prices add to the pressure
Oil-marketing companies are already facing under-recoveries, while subsidy outgo has risen sharply
With the conflict’s duration uncertain, India must prepare for prolonged pressure