## The Ministry of Finance Evaluates the Impact of Israel-Iran Tensions on the Indian Economy
The Ministry of Finance in India is closely monitoring the situation and assessing the potential impact of the escalating tensions between Israel and Iran on the Indian economy. Officials expressed concerns about the possibility of a rise in global oil prices due to the conflict.
The Commerce Secretary, Sunil Bharthwal, highlighted that the department routinely monitors trade and consults with stakeholders whenever such conflicts arise. This approach allows them to analyze the impact of events like the Russia-Ukraine war, the Red Sea crisis, and the Panama Canal blockage.
India has maintained a freeze on retail petrol and diesel prices for the past two years. However, any further escalation of the conflict could lead to a surge in import costs, as India is a major consumer of crude oil, importing 85% of its requirements. An official cautioned that an increase in crude oil prices could exacerbate inflationary pressures.
Meanwhile, global oil prices have already begun to react to the tensions. Brent Crude for June delivery rose by 46 cents, or 0.5%, to $90.56 a barrel, while U.S. crude futures for May delivery increased by 43 cents, or 0.5%, to $85.84 a barrel.