For India, elevated crude prices directly impact inflation and the import bill, adding pressure on the broader macro environment, adds Ponmudi. Hariprasad K, Research Analyst and Founder of Livelong Wealth also notes that the sentiment has turned cautious after the Federal Reserve maintained rates but highlighted rising oil prices as a key inflationary risk. “Commentary from Jerome Powell suggests that elevated energy prices could delay the rate-cut cycle, adding uncertainty to global growth expectations. This, coupled with renewed tensions in West Asia and attacks on critical energy infrastructure, has pushed crude oil prices higher and weighed on equity markets globally, including the Dow Jones Industrial Average,” explains Hariprasad.
