Geopolitical tensions threaten Indian rupee stability. Bank of Baroda warns the rupee could weaken below 92 per dollar if the US-Israel conflict with Iran extends. With India importing over 89 percent of its crude oil, prolonged conflict poses significant risks. Rising oil prices could reduce GDP growth by 0.5 percent and increase inflation by 0.2 to 0.4 percent. The rupee currently trades near 91.74 per dollar after hitting a record low of 92.30 last week despite Reserve Bank intervention. Supply disruptions through the Gulf of Hormuz, which handles 60 percent of India's crude imports, threaten financial markets and the broader economy. Economists expect the rupee to remain volatile within the 91 to 92 band depending on conflict duration and commodity price movements.