The Indian rupee weakened sharply on Wednesday, slipping to a record closing low of 92.05 against the US dollar as soaring crude oil prices and global risk aversion linked to the Iran crisis weighed heavily on the domestic currency.The rupee depreciated by 56 paise during the session, pressured by rising energy costs, foreign fund outflows and broad-based weakness in domestic equities, PTI reported.At the interbank foreign exchange market, the rupee opened at 92.05 and slid further to an intraday record low of 92.35 against the greenback. It eventually ended the session at 92.05, marking its lowest-ever closing level.The domestic forex market remained shut on Tuesday due to the Holi holiday. On Monday, the rupee had already fallen 41 paise to settle at 91.49 against the US dollar.Forex traders said the global risk-off mood triggered by the US-Iran conflict strengthened the dollar and intensified pressure on emerging market currencies, including the rupee.Foreign investors sold equities worth Rs 8,752.65 crore on a net basis on Wednesday, according to exchange data, further weighing on the currency.“A sharp escalation in Middle East conflict and the consequent spike in oil prices have reduced investor risk appetite. Higher oil prices increase inflation concerns and fiscal pressure on India (a major oil importer), leading to selling in bonds and rising yields,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.Meanwhile, the dollar index, which measures the greenback against a basket of six currencies, was trading 0.23 per cent lower at 98.82.“The dollar index crossed 98 levels comfortably on the risk-off situation prevailing all around the globe with stocks and bond markets getting hit badly, along with Gold and Silver, with predominance of the dollar,” Bhansali said.Brent crude, the global oil benchmark, was trading 1.29 per cent higher at USD 82.46 per barrel in futures trade, as supply concerns intensified after US attacks on Iran and Tehran’s retaliatory actions raised fears over energy flows through the Strait of Hormuz.Dilip Parmar, Research Analyst at HDFC Securities, said, “The Indian rupee recorded its steepest two-session decline since May 2025, as soaring energy prices intensified fears of persistent inflation and a widening trade deficit.This prevailing risk-off sentiment, coupled with high energy costs, is expected to keep the currency under pressure in the near term. Investors are closely monitoring the longevity of the Middle East conflict, as a prolonged standoff would likely drive up the import cost of energy and precious metals while hindering export growth.”According to Parmar, the spot USDINR pair faces immediate resistance at 92.60, while key support is seen at 91.80.On the domestic equity market front, the BSE Sensex dropped 1,122.66 points to close at 79,116.19, while the NSE Nifty declined 385.20 points to settle at 24,480.50.

Rachel Reeves will reaffirm her commitment to “end” the windfall tax on North Sea oil and gas as she meets energy bosses.

The Chancellor is set to discuss the gas and oil prices sent soaring by the Middle East war in talks with firms including BP, TotalEnergies and Serica.

Ms Reeves came under pressure ahead of the Downing Street talks from Scottish First Minister John Swinney to axe the charge, which is officially known as the energy profits levy.

Introduced by the Tory government in the wake of the war in Ukraine – which sparked a sharp rise in energy prices – the charge was brought in to claw back some of these unexpected profits for the Treasury.

The Prime Minister’s spokesman told reporters: “The Chancellor will convene a meeting with industry leaders from oil and gas firms today… including BP, TotalEnergies and Serica.

“And they’ll discuss the ongoing volatility in the oil and gas prices due to the conflict in the Middle East.

“The Chancellor will make clear that she remains committed to end the energy profits levy and replace it with a more permanent and predictable regime.

“She’ll be reaffirming her commitment to support jobs and investment in the industry and look at ways to protect everyday people from the downstream impact of these costs.”

Earlier, Mr Swinney again insisted it was “utterly essential” that the UK Government scrapped the windfall tax, which he said was impacting upon investment in the North Sea and costing jobs.

He said the current “uncertainty over energy supplies” as a result of the conflict in the Middle East was now a “material consideration” for the scrapping of the charge – which is officially known as the energy profits levy.

Speaking during a visit to Inverness, Mr Swinney said he had hoped the Chancellor would use Tuesday’s spring statement to axe it.

When that did not happen, Holyrood’s Finance Secretary Shona Robison said Ms Reeves must use Wednesday’s meeting with North Sea industry leaders to “announce an end to this tax on Scotland’s energy”.

Mr Swinney meanwhile insisted: “Now that we have the conflict in the Middle East I think it is utterly essential that the energy profits levy is removed.

“I had hoped it would be removed yesterday in the spring statement. It hasn’t been but the Chancellor is meeting the industry today.

“And I hope that results in the removal of the energy profits levy.”

Mr Swinney, speaking to the Press Association, added: “I’ve been saying to the UK Government for some time that the energy profits levy should be removed because it is hampering investment in the North Sea oil and gas sector, which is resulting in a loss of employment at a much faster rate than we anticipated.”

With the conflict in the Middle East leading to “uncertainty over energy supplies in the period to come” the First Minister said that was now a “material consideration in whether the energy profits levy should be maintained”.

He insisted however: “I don’t think there is a case for it and it should be removed.”