A surge in energy prices triggered by heightened tensions in the Middle East—particularly escalating conflict between the U.S. and Israel targeting Iran—is straining the economy of the world’s fastest-growing major nation. The resulting spike in fuel and commodity costs is weakening demand for its exports and increasing import expenses, placing significant downward pressure on its currency. Economists warn that prolonged instability in the region could deepen financial strain, forcing policymakers to weigh costly interventions to stabilize markets. With global energy markets already volatile, the ripple effects may extend far beyond borders, testing the resilience of emerging economies.
Rise in energy costs due to US-Israel war on Iran has put downward pressure on the currency of the world’s fastest-growing major economy
