New Delhi, April 26 -- The ongoing West Asia conflict and disruptions in the Strait of Hormuz are emerging as a major risk for the Indian economy, with elevated crude oil prices likely to pressure inflation, the rupee, and the current account, according to a report by Union Bank of India.

The report titled "From Hormuz to the Rupee: War, Oil and the Global Repricing of Risk" said that with the Strait of Hormuz "still functionally shut and Brent trading above $100/bbl, the backdrop does not bode well for global or domestic macros and markets."

It added that "higher oil keeps inflation risk alive, delays central-bank easing, pressures current accounts, tightens financial conditions, and weighs on risk assets, especially in energy-importin...