The passage of oil tankers through the Strait of Hormuz was halted as a consequence of Israeli attacks on Lebanon, Iran’s semi-official Fars news agency reported.
The report followed an overnight ceasefire between the US and Iran that Fars said had resulted in the transit of two oil tankers.
The restart of Hormuz is critical for oil and gas prices, which plunged after the ceasefire was announced overnight.
More stories like this are available on bloomberg.com
Published on April 8, 2026
Reserve Bank of India (RBI) Governor Sanjay Malhotra arrives at a press conference in Mumbai
| Photo Credit:
FRANCIS MASCARENHAS
The Reserve Bank of India on Wednesday proposed to ease banks’ capital adequacy norms, including allowing greater flexibility in recognising quarterly profits as regulatory capital.
The draft amendments relate to the computation of Capital to Risk Weighted Assets Ratio (CRAR), where the RBI has proposed to remove a key restriction that currently governs the inclusion of interim profits in Common Equity Tier 1 (CET1) capital.
At present, banks can include current-year profits in CET1 on a quarterly basis only if incremental provisions for non-performing assets (NPAs) in any quarter of the previous financial year do not deviate by more than 25 per cent from the average of all four quarters. The RBI has now proposed to do away with this qualifying condition, effectively making it easier for banks to count quarterly profits towards capital adequacy.
The move is expected to provide banks greater headroom in maintaining regulatory capital ratios, particularly during periods of earnings volatility, while also reducing operational complexity in capital computation.
In a parallel development, the central bank has also proposed changes to the Investment Fluctuation Reserve (IFR) framework, which acts as a buffer against mark-to-market losses on investment portfolios.
Under the draft norms, banks that already maintain capital charge for market risk and follow revised investment valuation norms may be exempted from maintaining IFR. Additionally, the requirement to maintain IFR on a continuous basis may be relaxed, with banks instead required to meet the threshold only at balance sheet dates.
The RBI said the review takes into account operational challenges faced by banks in maintaining IFR levels at all times, as well as differences in prudential frameworks across bank categories. The proposals also seek to harmonise IFR-related guidelines and remove inconsistencies.
Comments on both sets of draft directions have been invited from stakeholders until April 29, 2026.
Published on April 8, 2026
American currency Dollar and Gold ingot combinations. Close up for dollar and gold ingot
| Photo Credit:
DoganKutukcu
A sharp correction in gold prices can trigger margin calls and liquidation of leveraged positions, forcing investors to sell other financial assets and imparting volatility across markets, cautioned an RBI study.
The correction can also affect portfolio allocation and market sentiment, leading to broader repricing in equities, bonds, and currencies.
“Overall, the evidence suggests that gold prices entered a significant phase of price escalation in 2025, consistent with bubble-like behaviour, with the sharp and persistent price surge pointing to pronounced market exuberance and a possible increase in underlying risks,” per the study published in the RBI’s latest monetary policy report.
The study noted that gold prices rose sharply since 2024, driven by escalating geopolitical tensions, a weakening US dollar, and growing expectations of monetary policy easing across major economies following the end of the global tightening cycle.
Prices underwent a sharp appreciation – increasing by more than twice within a relatively short span from around $2,060 at end-2023 to $5,000 per ounce by February 2026 while repeatedly scaling new highs.
“During this period, gold ranked among the best-performing assets globally. While part of this increase reflects strong safe-haven demand and heightened uncertainty, the pace and persistence of the rise suggest the possibility of the build-up of bubble-like dynamics during 2025. Bubbles typically feature rapid, accelerating price surges- usually referred to as explosive behaviour – followed by sharp corrections.
“Yet, their detection remains tricky: there is no conclusive evidence that post‑surge crashes are predictable, making it difficult to distinguish irrational exuberance from rational responses to changes in fundamentals that may be latent or unobserved,” the study said.
Published on April 8, 2026
RBI Governor Sanjay Malhotra at a press conference in New Delhi on Wednesday.
| Photo Credit:
ANI
In the post policy press conference, RBI Governor Sanjay Malhotra clarified on several issues ranging from HDFC Bank, core inflation data to measures to reduce rupee volatility.
Excerpts from the conference:
On HDFC Bank
We had issued a press release and I will repeat — we did not find any material concerns related to governance or conduct. We did not find anything in our supervision or in their records that had anything related to governance or conduct. Generally, in our supervision we check the minutes and we also have a record of the minutes. Only after checking all of them, we had issued a press note
On any signs of stress in the banking system due to the war and transmission of rates
In so far as from the bank side, we are not seeing any systemic concerns with regard to their profitability and their health. Yes, there will be pockets, there will be sectors which will be hit because of the present crisis. The government has done a wonderful job as of now in trying to secure these inputs and reduce the supply chain disruptions. It will all depend on how long this continues. In the meanwhile, you are aware that we have already extended the time limit from March 31 to January 30 for the longer period of exports proceeds to be repatriated to 450 days till June 30.
Against 125 basis points, about 90 basis points has been the transmission that we have seen on the lending side. Similarly, on the deposit side, it is more than 100. So, there has been good satisfactory transmission.
On disclosing core inflation data projection separately for the first time
This has been a request, which has been there from the market participants. This has always been a factor in monetary policy decision making. But we thought that this was the right time to give our projections on core, which we have been doing internally. We did the five yearly review and there was a second five yearly review, which was completed. For us, it’s the headline, which is the target. And we have to ensure that it’s headline that remains at target and within the band. That’s the goal. That’s the primary goal for us. But at the same time, the various components of inflation and where they are emanating from are also very important.
On the steps taken to curb rupee volatility and depreciation
We did notice that in the last few weeks of last month, March, there was heightened volatility in the forex markets. We saw that positions were being built up, leading to arbitrage positions between the non-deliverable forward markets and the deliverable markets. In normal times, these linkages are important for an efficient price discovery.
It has been our endeavour to widen and broaden and make more liquid these markets. But when there is excessive volatility, when there is excessive building up of positions, there is only increasing volatility and perhaps not helping in price efficient price discovery, such kind of measures are taken. These are reactions to the specific market movements. These are not, in any sense, they are not signalling any structural change. We stand committed to the development, broadening and deepening of these markets to the internationalisation of the rupee. And so obviously, you know, these are not measures which are going to remain there forever.
On the recent episodes of frauds in some banks
I want to assure everyone through the media present over here that the banking system is very resilient, it is very safe, strong. The number of regulations, whether it is related to conduct, governance, prudence, liquidity, all of them, along with our supervisory framework, they keep the banking system very healthy and robust. These are episodes.
Unfortunately, these are not even bank specific, these are more in the nature of crimes. While we have to be vigilant and alert to them, the law enforcement mechanism, obviously, in our country will also take care of this. These are entity specific developments, do not pose any systemic risk at this point in time. As we have clarified that as they play out, we deal with them on a bilateral basis as they play out.
The banking system as a whole remains resilient and we continue to focus on improving the conduct related matters and governance related matters and banks are by and large run on very professional lines. Any material supervisory concerns as and when it arises are dealt with on an event specific basis. If anything requires at a system level or a regulatory tweak, then we are not averse to taking such measures.
Published on April 8, 2026
Oil and gas prices both plummeted after the US and Iran agreed to a two-week ceasefire aimed at halting the American-Israeli military campaign in exchange for a reopening of the Strait of Hormuz.
Brent fell as much as 17 per cent before trading around $92 a barrel, while European natural gas futures posted their biggest decline in more than two years, shedding as much as 20 per cent.
Prices of refined fuels such as diesel and jet fuel — which had been the biggest threats to global inflation — also tumbled.
Much will now depend on how quickly transit through Hormuz can resume. It’s the route for about a fifth of global oil and liquefied natural gas supplies, and the near-halt of traffic has pushed prices for real-world crude to a record.
Faced with an unprecedented disruption to flows, the world is rapidly running down supply buffers to offset the loss.
“It would take something truly tremendous for us to get back down below $80 a barrel,” Jason Schenker, president and chief economist at Prestige Economics LLC, told Bloomberg Television. “But almost anything going wrong in these ceasefire talks could very quickly put us back above $100.”
President Donald Trump said Wednesday that the US is discussing tariff and sanctions relief with Iran, according to a post on his Truth Social network. Washington waived some restrictions on Iranian oil during the conflict in a bid to keep markets well-supplied. A comprehensive package of relief could bring more barrels to Western buyers in time.
Trump also said earlier that the US would help ease the buildup of traffic in Hormuz. For now, the strait appears to remain largely blocked, with just seven ships seen exiting the region since Tuesday morning, while three entered, according to tracking data compiled by Bloomberg.
While the ceasefire is welcome, “it is highly unlikely that trade into the Gulf will simply resume,” said Neil Roberts, head of marine and aviation at insurance organization the Lloyd’s Market Association. “The region remains at heightened risk with none of the underlying tensions resolved.”
It wasn’t clear on Wednesday when the truce would take effect — with reports of ongoing hostilities rife across the Persian Gulf.
Even once Hormuz transit picks up, the return of energy supplies won’t be instant. Output has been reduced at oil and gas fields, while refineries have curtailed production or shut down. Some of those will take weeks to return to normal.
In Qatar, which took its giant Ras Laffan LNG complex offline in early March following Iranian attacks, engineers and workers are mobilizing with the aim of resuming production, according to people with knowledge of the matter. Some production could resume over the coming days, though it’s not clear how quickly it could ramp up and any return to significant output would require ships to be able to pass through Hormuz.
American and Iranian delegates are invited to meet in Islamabad on Friday to further negotiate a “conclusive agreement,” Pakistani Prime Minister Shehbaz Sharif — a key mediator — said on X.
The current plan for Hormuz includes allowing Iran and Oman to charge fees on ships passing through, the Associated Press reported, though Oman itself said maritime agreements prevent it from enforcing tolls.
Iran accepted Pakistan’s ceasefire proposal, with safe passage through the strait possible in coordination with the nation’s armed forces, Foreign Minister Abbas Araghchi said. Israel also agreed to the pause in fighting, but said it didn’t include Lebanon. The Israel Defense Forces subsequently said it had carried out its largest operation against Hezbollah since the start of the war.
The plunge in European gas came shortly after many investors in the fuel had amassed near-record net-bullish positions, leaving the market poised for a slump. In oil, futures tied to Abu Dhabi’s flagship Murban crude dropped as much as 20 per cent, the most since the contract’s launch in 2021.
“In theory, the 10–13 million barrels a day of crude oil and product supply stranded behind the strait should now be gradually released,” said Tamas Varga, an analyst at brokerage PVM. “Whether the pre-March status quo will be re-established depends entirely on whether the truce can be turned into a permanent peace.”
Physical traders remain cautious, waiting for clearer signs the ceasefire will hold before seeking cargoes from the Gulf. Meanwhile, shipowners said they needed to see vessels safely exit the region before sending in tankers. At present, there are more than 800 vessels that have been trapped by the war.
“The ceasefire may create transit opportunities, but it does not yet provide full maritime certainty and we need to understand all potential conditions attached,” said A.P. Moller-Maersk A/S, the world’s second-largest container line.
Trump’s announcement came about 90 minutes before his deadline for Iran to reopen the strait or face a massive bombardment. The lead-up was marked by military escalation and bellicose threats from the US president, including a post saying “a whole civilization will die tonight.”
“This was a market that had been starved of good news,” said Josh Gilbert, an analyst at eToro Ltd. “We’ve seen an instant selloff in crude, pulling back 16 per cent to under $100 as markets price in the prospect of the Strait of Hormuz reopening. It goes to show how much geopolitical risk was baked into crude, and how quickly it can unwind when there’s a credible path to de-escalation.”
More stories like this are available on bloomberg.com
Published on April 8, 2026
Leading diamantaires and manufacturers highlighted the journey of a diamond from its natural origin to a finished masterpiece to celebrate ‘World Diamond Day’ on April 8.
Launched by the Natural Diamond Council (NDC), ‘World Diamond Day’ was introduced as a global movement to recognise and celebrate the joy, passion, and community that natural diamonds inspire.
A media statement said that NDC led this collective celebration, encouraging people from across the industry, from artisans and manufacturers to retailers and consumers to share their authentic stories. The movement came alive on social media.
The Gem and Jewellery Export Promotion Council (GJEPC India), Gemological Institute of America (GIA), All India Gem and Jewellery Domestic Council (GJC), and the Bharat Diamond Bourse; and industry partners such as Venus Jewel, SRK Exports, HK Exports, KP Sanghvi, Dharmanandan Diamonds, Finestar Jewellery and Diamonds, Shivam Jewels and AS Motiwala joined together to celebrate natural diamonds.
Leaders such as Richa Goyal Sikri, Archana Thani, Nitya Arora and Arundhati De Sheth, played a significant role in bringing authentic stories and personal perspectives from across the industry to the global stage, it said.
Quoting Richa Singh, Managing Director of NDC, the statement said: “World Diamond Day is a platform for people to share what their diamonds truly mean to them. At a time when consumers, especially younger audiences, are looking for more meaningful ways to celebrate, this initiative offers a reason to pause and honour those moments. Natural diamonds are the perfect custodians of our memories. This day is also a reminder of why we do what we do, to bring joy, emotion, and meaning into people’s lives.”
Published on April 8, 2026
