BS EDIT: Collateral Damage: The Oil Shock India Must Brace For

By Business StandardPublished On Jun 17, 2025

Crude Surge

Brent crude has jumped 9% in a week. Analysts fear it could hit $150/barrel if the conflict escalates

Supply Threat

Israeli strikes on Iran may disrupt oil output. OPEC has capacity, but speed of response is uncertain

Hormuz in Focus

A quarter of global oil passes through the Strait of Hormuz. Any disruption could trigger a global energy shock

India’s Deficit Worry

High oil prices could widen India’s current account deficit and pressure the rupee, despite strong reserves

Growth & Inflation Hit

RBI estimates a 10% oil price hike could raise inflation by 30 bps and lower growth by 15 bps

Fiscal & Policy Risks

Higher oil may force tax cuts, hurt revenue, and delay investments. Policy vigilance is key