New Delhi, April 22 -- A prolonged disruption in global energy supply triggered by West Asia conflict could widen India's trade deficit and strain its fiscal position, according to Moody's Ratings.

The agency noted that Brent Crude prices have surged by around 31 per cent since the outbreak of conflict involving the United States, Israel and Iran on February 28. Prices have remained volatile, reacting sharply to geopolitical developments and prospects of de-escalation.

As the world's third-largest crude importer, India is particularly vulnerable to rising oil prices, which tend to increase the import bill, fuel inflation and compress corporate margins.

Impact on Markets and Investment

Higher energy costs and global uncertainty have al...