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India's Oil Habit Puts It in Firing Line From a U.S.-Iran War

  • Two of every three barrels imported from Middle East suppliers
  • Strategic Indian crude reserves only cover needs for 9.5 days
India's Rupee Drops to Record Low as Crude Oil Prices Advance
Photographer: Dhiraj Singh/Bloomberg

India, which is heavily dependent on Middle Eastern oil, is looking on with increasing apprehension as the U.S. and Iran flirt with war.

The country imported 84% of its crude in the last financial year, government data show, and two of every three of those barrels was sourced from the conflict-prone region. A major war in the Middle East threatens to push up consumer prices, widen the nation’s external deficits, and potentially derail Prime Minister Narendra Modi’s bid to revive flagging economic growth.