US President Donald Trump is intensifying economic pressure on Iran, adding to uncertainty in global markets. Restrictions targeting Iranian oil exports, financial networks and trade are raising concerns over global energy supplies, while continued disruption around the Strait of Hormuz is keeping oil markets highly sensitive to geopolitical developments.
India could feel the impact if the situation keeps pushing crude prices higher. As a major oil importer, India could face a larger import bill, higher transportation costs and additional inflationary pressure. The country’s merchandise trade deficit already widened to a six-month high in July, with elevated crude prices and global freight costs contributing to the increase.
At the same time, India has been diversifying its energy sources. Russia supplied more than half of India’s crude imports in July, according to recent estimates, while Indian refiners are also benefiting from stronger demand for fuel as global supply chains remain disrupted. This diversification could provide some cushion, although a prolonged Iran crisis and sustained high oil prices would remain a significant challenge for India’s economy.
