Brent crude has climbed back to the $100 per barrel level, marking a significant escalation in energy costs driven by renewed geopolitical instability in the Middle East.
The benchmark price reversal comes after earlier declines, signaling that market participants are once again pricing in substantial supply disruption risks rather than treating the conflict as a contained event.
The return to triple-digit oil prices poses immediate headwinds for emerging markets, particularly India, where the recent stock market rebound is now under threat.
Higher import bills are expected to widen the current account deficit and put upward pressure on domestic inflation, complicating the monetary policy outlook for the Reserve Bank of India.
Corporate profitability is also at risk.
Indian companies face a dual squeeze: rising input costs for energy-intensive sectors and potential margin compression as they struggle to pass on higher prices to consumers.