Crude oil price surge amid West Asia stand-off may strain fiscal deficit, current account: Finance ministry

5 min readNew DelhiJul 29, 2026 08:41 PM IST Commodity prices, particularly crude oil, which had declined below pre-conflict levels, have risen again this month. (File photo) In the wake of persistent stand-off in West Asia, the Indian economy continues to face an upside risk to inflation, fiscal and current account deficits and downside risk to growth, the Ministry of Finance said on Friday. The recent resurgence in global crude oil prices, if sustained, could “reemerge as a source of pressure on financing of both the fiscal deficit and the current account balance”, the ministry said in its monthly economic review for July. Prices of industrial commodities, including critical minerals and rare earth elements, have stayed elevated throughout the month. “Instances such as flooding in Chile,