The peace agreement between the United States and Iran is set to restore global supply chains, ease inflationary pressures, and benefit energy-dependent economies like India, according to Dr. Ranjeet Mehta, CEO and Secretary General of the PHD Chamber of Commerce and Industry (PHDCCI), speaking on Monday, 15 June. Mehta described the deal as a 'welcome development' with wide-ranging implications for global energy markets and fiscal stability.

Why India Stands to Gain

India imports more than 80 per cent of its crude oil requirements, making it acutely sensitive to global oil price movements. According to Mehta, any sustained decline in crude prices resulting from the agreement would reduce inflationary pressures domestically and help contain the fiscal deficit.

He further noted that lower crude oil prices would reduce demand for the US dollar, potentially helping stabilise the Indian rupee against the American currency — a double benefit for an import-heavy economy.

Strait of Hormuz: The Critical Chokepoint

A key provision of the agreement, according to Mehta, is the reopening of the Strait of Hormuz without disruptions. The strategic waterway accounts for nearly 20 per cent of global crude oil shipments, and any sustained interruption there has historically sent oil prices sharply higher.

'If the Strait of Hormuz remains fully operational and free from disruptions, it will help secure the smooth flow of crude oil for a prolonged period, benefiting the global economy,' Mehta said. Uninterrupted passage through the strait is seen as central to the deal's energy market impact.

India's Supply Chain Management During the Crisis

Mehta also praised the Indian government's handling of the recent West Asia geopolitical crisis, noting that supply chains were managed efficiently despite the conflict. 'As a result, India witnessed a relatively moderate increase in energy prices compared to several other countries,' he said.

This comes amid a broader pattern where India has increasingly diversified its crude import sources — including from Russia — to insulate itself from West Asian supply shocks. The PHDCCI chief's remarks suggest that crisis management, combined with the new deal, positions India favourably going forward.

Markets React Positively

Improved global stability sentiment was swiftly reflected in Indian equity markets on Monday. The BSE Sensex rose 736.38 points, or 0.97 per cent, to close at 76,264.33, while the Nifty50 advanced 231 points, or 0.98 per cent, to settle at 23,853.90.

Mehta attributed the strong market performance in part to the improved sentiment triggered by the US-Iran agreement, which he said has lifted confidence across global financial markets. Whether the rally sustains will depend on how quickly the deal's provisions translate into actual supply normalisation.