Iran War: Crude Surge to Deeply Impact India, Expert Warns on Trade Deficit, Gold

• SBI expert Soumya Kanti Ghosh warns that crude oil prices staying at $100-110 per barrel could significantly increase India's trade deficit.
• Ongoing conflict in Iran has pushed crude oil prices above $100, posing a major impact on India, which imports most of its crude.
• Ghosh estimates that every $1 increase in crude oil prices adds $1.5-2 billion to India's oil import bill, potentially increasing total cost by $30-40 billion.
• A rise in trade deficit is almost certain if exports do not increase commensurately with the higher import costs.
• Ghosh suggests gold and silver might see a correction, as they haven't been strong hedges against inflation or geopolitical tensions recently.