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Oil Price Uncertainty Shoots Up as West Asia Conflict Intensifies

* .The global oil price uncertainty index has jumped to its highest level following concerns around the West Asia conflict.

* The prices of Brent crude oil and LNG (Japan-Korea Marker) (30th March ‘26) have increased by 55% and 90%, respectively, since the beginning of the conflict.

* Going ahead, the duration of the conflict and its eventual impact on the global and domestic economy remain a key monitorable.

Freight Rates for Shipping Petroleum Products Rise

* The escalating global tensions have resulted in a surge in freight rates for oil tankers.

* Furthermore, freight insurance premiums are also rising, adding to the overall costs and disrupting the global supply chains.

* The conflict has resulted in a sharp decline in the number of ships and volume of trade transiting through the Strait of Hormuz.

Global Yields Increase; Major Currencies Depreciate Against DXY

* Since the West Asia conflict began, bond yields have increased across most economies amid heightened global uncertainty.

* Moreover, most major currencies have depreciated against the US dollar, while the dollar itself has strengthened by around 2.8% during the same period

Major Central Banks Pause Policy Rate Changes

* Rise in energy prices has increased central banks’ near-term inflation projections.

* Major central banks have paused policy rate changes, with prospects for further rate cuts during 2026 diminishing.

* Fed expected to deliver only a single rate cut in 2026, while BoE is not expected to cut rates further. ECB is likely to hike rates beginning Q2 2026.

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