US Midterms Offer India Limited Relief; Oil and Russia Sanctions Risks Remain

The US midterm election outcome is expected to offer only marginal near-term relief to India, with crude oil prices, potential tariffs on Russian oil purchases, and trade policy uncertainty remaining key economic challenges, according to a CareEdge Ratings report. The report said Democratic control of both US Congress chambers could strengthen diplomatic engagement on the Iran conflict and mildly support the rupee and foreign portfolio investor inflows. However, immediate economic impact is limited as key policy decisions rest largely with President Donald Trump and the White House. Crude oil prices fell 8.7 percent to USD 94.62 per barrel after the election results, but remain sensitive to Strait of Hormuz developments. The report warned that threats of up to 100 percent tariffs on major Russian crude buyers, including India, persist, as the October 16 waiver has no expiry date.