India faces rupee, inflation risks from Middle East energy disruption: Moody's

• Moody's warns India faces rupee pressure, higher inflation, and widening current account deficit due to Middle East energy disruption.
• India heavily relies on Middle East for 46% of its crude and LNG imports, making it vulnerable to supply shocks.
• Strait of Hormuz blockage, a critical shipping route, has stalled trade, posing significant risk to global energy markets.
• Prolonged disruption could push Brent crude prices above $100/barrel, exacerbating inflation and slowing global growth.
• Costly energy imports would weaken the rupee, complicate monetary policy, and strain fiscal management through potential subsidies.