Mumbai/Bengaluru, July 8 -- The collapse of the US-Iran peace deal in less than a month has rattled India's consumer sector, reviving fears that higher oil prices and fresh supply-chain disruptions could squeeze demand just as companies were betting on a broader recovery.

The renewed uncertainty followed US President Donald Trump's declaration on Wednesday that the peace deal with Iran was effectively over, alongside Washington's decision to end a sanctions waiver on Iranian energy supplies.

The market reaction was swift. The Nifty FMCG Index fell 2.49% on Wednesday, underperforming the broader market as all 15 constituents declined, led by Dabur India, Hindustan Unilever, and Tata Consumer Products, whose shares fell 3-4% each. The ben...