U.S.-Iran tensions push oil, India 10-year yield 7.04% rupee slips
India's financial scene is feeling the heat as U.S.-Iran tensions send crude oil prices soaring.
On Tuesday, May 5, 2026, the 10-year bond yield nudged up to 7.04%, making borrowing costlier, while the rupee slipped further against the dollar.
Basically, higher oil prices are putting pressure on both investors and anyone dealing with imports.
Brent near $114, RBI auctions ₹34,000cr
Iran's attacks on ships in the Strait of Hormuz and a fire at a U.A.E. oil port have pushed Brent crude close to $114 per barrel, a 60% jump since late February after US and Israeli strikes on Iran.
To help manage things, the RBI is rolling out a new ₹34,000 crore bond auction on May 8.
As Kunal Sodhani from Shinhan Bank puts it, every $10 bump in oil adds to inflation and makes imports pricier by $15 billion for India.