Ahmedabad Times

New Delhi: India and different Asia-Pacific economies may face rising credit score stress if the continuing Gulf battle persists, as increased vitality costs and provide disruptions ripple by international markets, in line with a Moody’s Scores report launched on Friday.

Import-dependent economies, it stated, would face tighter availability of gasoline, meals and industrial inputs. Disruptions to fertilizer provide chains may decrease crop yields and push up meals costs, growing affordability dangers.

India sourced 43% of its petroleum and petroleum merchandise from GCC international locations, Iraq and Iran in 2024, in contrast with 84% by Japan, 67% by Korea, and 42% by China.
“Producers with important belongings in Japan, Korea, India and China are most uncovered due to their heavy reliance on Center Japanese oil and the dominance of naphtha – an oil-derived product – as the first feedstock for Asia’s steam crackers,” stated Moody’s Scores.

It famous {that a} extended battle may push Brent crude to about $135 per barrel within the second quarter, retaining costs above $100 for months earlier than easing towards $90 by end-2026. It recognized three key transmission channels for international credit score threat, that’s, vitality markets and provide chains, tighter macro-financial circumstances, and broader geopolitical disruptions.