India’s heavy reliance on imported oil, especially from Iraq, makes it more vulnerable than most countries to the conflict there, with surging oil prices threatening to derail the new prime minister’s plans to resuscitate the economy. Crude-oil prices have shot up to a nine-month high of about $115 per barrel. India imports most of its oil and subsidizes fuel so higher oil prices are particularly painful for Asia’s third-largest economy. They could exacerbate the country’s fiscal and current account deficits as well as its already-high inflation rates. India’s benchmark stock price index has slipped from record highs while the rupee has lost ground against the dollar since June 10. New Prime Minister Narendra Modi has mobilized his ministers to try to contain the fallout from what is evolving into his first economic crisis since taking office less than a […]