Indian Rupee Plunges to Record Low as Brent Crude Nears $100 Amid Mideast Tensions

The Indian rupee tumbled to a fresh all-time low of around 92.37 against the US dollar on March 13, 2026, reflecting fragile investor sentiment triggered by Brent crude oil prices approaching $100 per barrel. Escalating Middle East conflicts, particularly disruptions in the Strait of Hormuz, have fueled fears of supply shocks that could inflate India's monthly oil import bill by $7-8 billion and widen the current account deficit beyond 2.5% of GDP this fiscal year. India, which imports over 85% of its crude needs, faces heightened vulnerability, with economists cautioning that sustained high oil prices above $95 could exacerbate inflation and pressure foreign reserves—despite RBI interventions maintaining them above $650 billion. Finance Ministry sources emphasized resilience through diversified energy strategies, but markets remain jittery amid lackluster exports and geopolitical risks.