Oil prices have reversed earlier declines amid renewed Middle East tensions, with the spike now threatening to undermine India’s recent stock market rebound.
The surge in crude prices has raised concerns over inflationary pressures and economic growth in the oil-import-dependent nation.
Indian equities, which had shown signs of recovery in recent sessions, are now at risk of reversing gains as investors factor in the potential for higher energy costs and slower domestic consumption.
The renewed geopolitical uncertainty has also led to a broader repricing of risk assets, with energy-linked sectors and emerging market equities under pressure.
Analysts are closely watching for further developments in the region, as well as for central bank responses to the shifting inflation outlook.