Indian government bonds slid on Monday after oil prices jumped as fresh U.S.-Iran strikes threatened a fragile ceasefire and stoked rate-hike worries ahead of a crucial policy meeting. The Reserve Bank of India will announce its rate decision on Friday, with markets largely pricing in a pause even as Standard Chartered, Capital Economics, ANZ, MUFG and OCBC call for a 25-basis-point hike. "While the case for a tighter monetary policy is strengthening, the timing of the move is a matter of debate," Radhika Rao, senior economist and executive director at DBS Bank said in a note. "In our view, the monetary policy committee is likely to prioritise the key mandate, i.e. inflation, to decide on the path ahead, while relying on other instruments to stabilise the currency and bond markets." India's inflation pressure is building. The rise in wholesale prices accelerated to a three and a half-year high in April. State-run fuel retailers have raised fuel prices four times in May. A forecast for a weak monsoon also poses further inflation risks.