$100 Oil Basket: India's Energy Supplies at Risk as Iran-US Tensions Escalate

India's crude oil basket has hit $100 per barrel for the first time due to renewed tensions between Iran and the US, raising concerns over energy supplies from West Asia. Brent crude prices have also risen to near a six-week high of around $97 a barrel.

The increased risk of disruptions to global energy supplies has led to higher oil import costs for India, which could widen its current account deficit to 1.7% of GDP or about $71 billion if crude prices stay above $90 per barrel for the second half of FY27.

Oil marketing companies (OMCs) are incurring under-recovery on both petrol and diesel due to the recent rise in crude oil prices, according to a refinery executive. The executive stated that India has alternate supplies from countries such as Russia, Brazil, and African nations.