The conflict involving Iran, Israel and the United States continues to escalate, and this has led to a sharp spike in oil prices. Crude oil has shot up to 2022 highs well over the $115/bbl mark on concerns over prolonged disruptions to oil production and shipping and its impact on supply. This is not at all good news for India, which is a key importer of oil. Nilesh Shah, MD Kotak Mahindra AMC pointed out that, “every 10 % jump in Oil prices adversely impacts our CPI inflation by 20 bps in primary effect, 10 bps in GDP Growth and 10 bps in Current Account Deficit on a back of envelope calculation.”