Crude Rallies Beyond $120: What It Signals for Markets and Rupee

Crude oil prices have surged to their highest level since 2022, touching $122 per barrel amid fears of US-Iran conflict escalation. The conflict has disrupted trade and intensified supply chain concerns, with analysts warning of a potential global recession if it extends beyond mid-May. Brent crude has consistently stayed above $90 since the war began on February 29, putting pressure on India's current account deficit and currency. The US imposed a naval blockade on Iranian ports and the Strait of Hormuz, further worsening the global supply outlook. Soaring crude oil prices are expected to increase input costs for companies, particularly in aviation, paints, logistics, and chemicals, potentially squeezing company margins and earnings outlook. The rupee has weakened nearly 11% this year, driven by the surge in crude prices, and fell to a record low of 95.21 against the dollar.