Energy & Petrochemicals #oil shock#inflation
Oil shock to inflation risk: How Middle East war is reshaping India's economic outlook
The Iran war is causing a severe oil shock for India, the world's third-largest oil importer. Benchmark crude surged to nearly $120/barrel, and natural gas prices rose 75%. The RBI now expects inflation to average 5.1% in FY27, up from 3.48% in April, and economic growth to slow to 6.6% from 7.7%. Supply disruptions at the Strait of Hormuz and higher fertiliser costs are compounding risks for key crops like wheat amid a potential El Nino.
Jun 14, 2026 1 source
