Why US Wars Are A Disaster for India's Economy

Why US Wars Are A Disaster for India's Economy
The escalating US–Iran conflict has pushed oil prices higher, with WTI crude climbing above $65 and Brent nearing $69 as fears of supply disruption grow. For India, which imports over 85% of its crude oil needs, this surge translates directly into imported inflation. Higher global oil prices raise the cost of fuel, transportation, and electricity, feeding into consumer prices across food, manufacturing, and services. An oil blockade or prolonged instability in the Strait of Hormuz would magnify the shock, tightening supply and driving premiums on shipping and insurance. India’s current account deficit could widen, the rupee may weaken, and inflationary pressures would force policymakers to balance between controlling prices and sustaining growth. In short, the conflict risks exporting instability into India’s economy, with oil at the center of the inflationary spiral.
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