New Delhi, April 23 -- Escalating geopolitical tensions and supply disruptions stemming from the US-Iran war are casting a long shadow over the global and domestic economic outlook, even as a temporary ceasefire offers short-term relief, the Reserve Bank of India (RBI) said in its April 2026 bulletin.

"The global macroeconomic milieu has undergone a significant shift with supply chain disruptions and rising energy costs due to the West Asia conflict," the central bank said in the bulletin's State of the Economy article.

It cautioned that heightened volatility in commodity prices and financial markets has added to the uncertainty, underlining the fragile nature of the recovery. RBI flagged that the trajectory of the war will be critical....