Crude Oil Soars Past $115, Hormuz Disruption Fears: India's Economy Faces Major Shock

• Global crude oil prices surged above $115/barrel due to West Asia tensions, raising concerns for India, a major energy importer.
• Fears of Strait of Hormuz disruption are critical as over half of India's crude oil imports transit this strategic waterway.
• Higher oil prices will widen India's current account deficit, pressure the rupee (hit 92.28 against USD), and fuel inflation.
• Indian equities saw a sharp sell-off (Nifty 50, Bank Nifty, Sensex plunged), with sectors like aviation and chemicals facing margin pressure.
• While immediate impact is severe, historical data suggests long-term damage to Indian equities is limited unless the crisis is prolonged.