New Delhi, July 30 -- India's economic outlook remains underpinned by resilient domestic fundamentals, but resurgence in global crude oil prices, if sustained, could re-emerge as a source of pressure on financing of both the fiscal deficit and the current account balance, the finance ministry said on Wednesday in its monthly report. India, which is the world's third biggest oil consumers after the US and China, imports over 88% crude it processes and pays in dollar. An international oil price volatility was triggered since the war between the US and Israel on the one side and Iran on the other broke out on February 28. Despite the government's efforts to shield customers from a global spike in fuel prices by slashing excise duty on petrol and diesel by Rs.10 each on March 27, refiners were forced to raise their retail prices by nearly Rs.7.50 per litre in four instalments between May 15 and May 25. Although international oil prices subsided from June onwards, the recent escalation of conflict in West Asia again saw an upward movement of energy prices. Benchmark Brent crude that fell below $70 a barrel in the first week of July from $103.54 a barrel on May 22, again inched up to nearly $97 last week. Brent crude was trading at $89.71 a barrel on Wednesday with a gain of 6.68%. "The global macroeconomic environment remains characterised by elevated uncertainty. Following a brief period of respite, geopolitical tensions in West Asia have re-emerged, leading to renewed upward pressure on global energy prices," the Monthly Economic Review said. The report pointed at inflationary impact of high fuel prices. The increase in retail fuel prices, following the partial pass-through of higher global crude oil prices since mid-May 2026, was evident in June, with inflation in diesel, petrol and CNG rising further to 8.4%, 7.5% and 6.2%, respectively, it said. Although global economic uncertainty resurfaced in July as geopolitical tensions in West Asia escalated, the increase remains well below the sharp spike witnessed during the initial phase of the conflict, it said pointing at the International Monetary Fund's (IMF) July 2026 World Economic Outlook that projects global growth to moderate from 3.2% in 2025 to 3% in 2026. "While risks are more balanced than in the April 2026 WEO, they remain tilted to the downside, with renewed conflict in the Middle East, trade fragmentation, a correction in technology-driven expectations and limited policy buffers posing key risks to global growth," the report said. The global economy continues to face heightened uncertainty amid geopolitical tensions and evolving trade and financial conditions, with risks to the outlook remaining tilted to the downside. Against this backdrop, India's macroeconomic fundamentals and domestic demand are expected to continue supporting economic activity, the report said....