Russian oil reprieve, but other risks from Iran conflict mount

6th March 2026

One of India's key exposures to the Middle East conflict is higher oil prices, so news that the US has temporarily eased sanctions on Russian oil purchases will have brought some relief in New Delhi. But there are other risks too; surging LNG prices will put pressure on the government to raise fertiliser subsidies, and a prolonged conflict may lead to a fall in remittances from the Gulf.

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