Overview

• Crisil reports that most Indian companies will weather the current Middle East tensions with minimal near-term disruption due to low capital expenditure and healthy balance sheets.
• Brent crude oil has climbed to $73-76 per barrel in June, up from around $65 in April-May, elevating input costs for fuel-dependent industries.
• India's direct trade with Israel and Iran remains under 1% of total exchange, but exporters could face delayed payments and stretched working capital cycles if the conflict endures.
• Key export sectors—basmati rice (14% sold to Iran and Israel), fertilizers and diamonds—could see heightened pressure, though alternative markets offer partial relief.
• Upstream oil firms could benefit from higher prices while downstream refiners, aviation, paint, tyre and specialty chemical companies confront margin squeeze from rising fuel, freight, insurance costs.