West Asia Tensions Send Crude Oil Prices Soaring to Four-Month High

Crude oil prices have surged to a four-month high of $108.77 per barrel amid escalating tensions in West Asia.

The situation in the region has led to renewed concerns over energy supplies and stability, causing Brent crude prices to rise by more than 12% over the past week.

Economist Sunil Sinha warned that a sustained increase in crude prices could put pressure on India's economic growth, increasing inflation, import costs, and risks to the current account.

Sinha estimated that every $10 increase in international crude oil prices could reduce India's GDP growth by around 20-30 basis points. With Brent crude now above $100 per barrel, this impact is significant for India as higher crude prices increase the country's import bill and can also put pressure on inflation.