Markets tumble: Sensex, Nifty fall sharply on oil shock and US-Iran crisis
Indian benchmark indices BSE Sensex and Nifty 50 opened sharply lower on Monday, tracking global volatility after US-Iran tensions escalated and crude oil prices surged above $100 per barrel.
The Sensex fell 2.08% to open at 75,937.16, while the Nifty 50 declined 1.92% to 23,589.60. Early indicator from GIFT Nifty had already pointed to a gap-down start, trading about 1.4% lower in pre-market deals.
Oil shock drives global risk-off mood
The sell-off comes after the US Central Command announced plans to enforce a naval blockade around Iranian ports, raising fears of supply disruptions through the Strait of Hormuz.
Crude prices reacted sharply:
West Texas Intermediate surged 8% to around $104 per barrel Brent crude jumped 7% to above $102
The Strait of Hormuz handles nearly one-fifth of global oil trade, making it a critical chokepoint. Any disruption increases shipping risks, insurance costs, and delivery delays—fueling inflation concerns worldwide.
Global markets under pressure
The risk-off sentiment extended globally:
- S&P 500 futures slipped around 1%
- Asian markets declined in early trade
- The US dollar strengthened, while currencies like the Australian dollar and British pound weakened
- Gold prices eased as investors booked profits
Back to pre-ceasefire uncertainty
Markets had briefly stabilised amid ceasefire hopes, with oil cooling to around $95 per barrel. However, the breakdown of talks has reversed sentiment, bringing back volatility.
Analysts warn that the bigger risk lies ahead—if geopolitical tensions escalate further and energy infrastructure across the region is targeted, oil prices could remain elevated, keeping equity markets under sustained pressure.
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