Brent Crude Nears $96 as Fresh US-Iran Strikes Renew Inflation Fears; Modi’s Gold Appeal Hits Jewellery Stocks

New Delhi: Renewed military escalation between the United States and Iran has sent global oil prices sharply higher, reviving concerns that a prolonged disruption in the West Asia could feed into inflation, interest rates and financial markets.

Brent crude climbed to around $96 a barrel, while US West Texas Intermediate crude moved above $91 on Wednesday after the US and Iran exchanged fresh strikes. The latest escalation has intensified fears over the security of the Strait of Hormuz, through which nearly one-fifth of the world's oil supply normally passes.

The renewed fighting has also unsettled equity and bond markets. Asian shares fell sharply, while US Treasury yields rose as investors reassessed the possibility of higher interest rates if energy prices keep inflation elevated.

Hormuz at the centre of the crisis

Iran's threats against shipping through the Strait of Hormuz remain a major concern for energy markets. Any prolonged interruption to traffic through the strategic waterway could push crude prices substantially higher and raise transportation and production costs worldwide.

The latest strikes came after a period of relative calm in the conflict. The US said its attacks targeted Iranian military infrastructure, including air-defence, radar and maritime facilities. Iran subsequently launched attacks against US-linked assets in the region.

Modi's gold appeal rattles jewellery stocks

The geopolitical crisis has also added pressure on Indian markets. Indian equity markets recovered into positive territory at one point during yesterday's trading session but turned lower by the close. The Sensex ended down 0.02%, while the Nifty fell 0.10%.

Prime Minister Narendra Modi's remarks about gold in a video message praising India's GDP growth triggered a sharp decline in shares of jewellery and gold-loan companies.

Manappuram Finance, Kalyan Jewellers, Titan, Thangamayil Jewellery and PC Jeweller fell by as much as 7%. Modi reiterated his appeal to people to avoid buying gold unless it was necessary.

India is one of the world's largest consumers and importers of gold. During the 2025-26 financial year, India's gold imports surged 24% to a record $71.98 billion, equivalent to around ₹6.91 lakh crore.

Gold imports had cost India $45.54 billion in 2023-24 and $35 billion in 2022-23. Since gold imports are paid for in US dollars, higher imports increase demand for the dollar, putting additional pressure on the Indian rupee.

The broader concern, however, remains oil. For an economy heavily dependent on imported crude, a sustained rise in energy prices could raise the cost of transport, manufacturing and imports, making the US-Iran conflict an increasingly important economic risk for India.