India does not expect inflation to rise substantially from a jump in global crude oil prices triggered by the war in the Middle East, as domestic price levels remain near the lower end of the central bank’s tolerance band, Finance Minister Nirmala Sitharaman said on Monday.
Oil prices surged about 26% in early trade to their highest since July 2022 after Iran named Mojtaba Khamenei as successor to his father Supreme Leader Ayatollah Ali Khamenei, who was killed in air strikes by Israel and the United States more than a week ago. Major Middle Eastern oil producers have cut supply because they cannot safely send shipments through the Strait of Hormuz to refiners worldwide.