New Delhi, July 14 -- India's merchandise trade deficit is likely to remain under pressure in the coming months as renewed geopolitical uncertainty in the Middle East could keep oil prices and freight costs elevated, although softer crude demand from China may help limit any sharp rise in global oil prices, according to a report by Dolat Capital.

"Looking ahead, renewed disruptions in the Strait of Hormuz could keep freight costs and oil prices elevated, although subdued crude demand from China and the absence of aggressive strategic reserve stockpiling by major economies are likely to limit any sharp rise in global oil prices," the report said.

India's merchandise trade deficit widened to a five-month high of USD 30.4 billion in June 2...