During a Monetary Policy Committee press conference, the Reserve Bank of India (RBI) outlined five key risks to the Indian economy stemming from the ongoing conflict in the Middle East, particularly involving Iran. The RBI warned that elevated crude oil prices could lead to increased imported inflation and a widening current account deficit. Additionally, disruptions in energy markets and commodities could negatively impact various sectors, including industry and agriculture, resulting in decreased domestic output. The central bank also noted that rising uncertainty and demand for safe-haven assets might tighten domestic liquidity, affecting consumption and investment. Furthermore, weaker global growth prospects could diminish external demand and reduce remittance inflows. The RBI's Monetary Policy Committee voted unanimously to maintain the benchmark repurchase rate at 5.25%, aiming to support economic growth despite these challenges. As the conflict escalates, financial markets have reacted negatively, with equities and bond benchmarks declining and the Indian rupee hitting a record low since the conflict began.